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.
Computation of Period of stay in India under section 6(1) of the Income-tax Act 1961
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 voyage.
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.’
Sanjay Vasudeva (Partner) S.C. Vasudeva & Co.