In the Income-tax Rules, 1962, in Part XV, after Rule 125,
the following Rule shall be inserted to determine the period of
stay of crew members of foreign bound ships in India.
Rule 126 (1) - For the purposes of clause (1)
of section 6, in case of an individual, being a citizen of India
and a member of the crew of a ship, the period or periods of stay
in India shall, in respect of an eligible voyage, not include the
period computed in accordance with sub-rule (2).
Rule 126 (2)- The period referred to in
sub-rule (1) shall be the period beginning on the date entered into
the Continuous Discharge Certificate in respect of joining the ship
by the said individual for the eligible voyage and ending on the
date entered into the Continuous Discharge Certificate in respect
of signing off by that individual from the ship in respect of such
Explanation: For the purposes of this rule,-
(a) "Continuous Discharge Certificate" shall have the
meaning assigned to it in the Merchant Shipping (Continuous
Discharge Certificate-cum Seafarer's Identity Document) Rules,
2001 made under the Merchant Shipping Act, 1958 (44 of 1958);
(b) "eligible voyage" shall mean a voyage undertaken
by a ship engaged in the carriage of passengers or freight in
international traffic where- (i) for the voyage having originated
from any port in India, has as its destination any port outside
India; and (ii) for the voyage having originated from any port
outside India, has as its destination any port in India.'
As per section 6(1) of the Act, period of stay in India has to
be calculated for determining the residential status of assesses
who are citizens of India and are members of crew of an Indian
ship. An explanation to the said section was added by Finance Act
2015 stating that "For the purposes of this clause, in the
case of an individual, being a citizen of India and a member of the
crew of a foreign bound ship leaving India, the period or periods
of stay in India shall, in respect of such voyage, be determined in
the manner and subject to such conditions as may be
prescribed". Thus, the present notification will help in
calculation of period of stay in a uniform manner.
Originally published August 2015.
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