Reportedly, the judgment of the Kolkata income tax tribunal will affect around one lakh seafarers who will have to pay 30 percent tax on their earned income. Also, the things can go worse as the revenue department may also raise the tax demand for the last 6 years of their total income. Moreover, Maritime Union of India (MUI) and National Union of Seafarers of India (NUSI), two seafarers’ associations are looking forward to challenge the tax tribunal’s judgment. According to the email sent by the unions to their members,”If this judgment is not challenged, then it will snatch away the income tax benefits presently received by thousands of seafarers working on Indian or foreign flag ships. This will lead to payment of heavy income tax on the whole income even when the seafarer is non-resident whether on Indian or foreign flag ships.”
The order came from the Kolkata tribunal order over the appeal filed by Tapas Bandopadhyay against an order initiated by the deputy director of income tax in Kolkata. The tribunal stated that any part of income received in India is liable to go for taxable except in any case of double taxation avoidance agreement (DTAA).
