The CBDT has issued Circular No. 13/2017 dated 11.04.2017 in which it has clarified the law regarding Liability to income-tax in India for a non-resident seafarer receiving remuneration in NRE (Non Resident External) account maintained with an Indian Bank. This Circular is important in view of the law laid down by the Kolkata Bench of the Tribunal in Tapas Kumar Bandopadhyay vs. DDIT where it was held that even if the salary of a non-resident seaman accrued outside India, it was taxable in India if the employer credited it to the assessee’s NRE account. In Utanka Roy vs. DIT (Calcutta High Court) it was clarified that salary received by a non-resident for services rendered abroad accrues outside India and is not chargeable to tax in India. The source of the receipt is not relevant.
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