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Old 18th July 2016, 00:02   #931
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Originally Posted by binand View Post
I think the tribunal took a good decision. Somebody was trying to escape without paying any income tax anywhere in the world, and the tribunal put a stop to it. Way to go. :-)
Then why are people working in the Gulf allowed to escape without paying tax anywhere in the world.

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Originally Posted by nowwhat? View Post
I am unable to find a copy of the judgement or even any news reporting of this case.
Attaching a copy.

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It is unclear what the tax status of the appellant was and whether he had non-resident status for that financial year.
He did have Non-Resident status.

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Not so fast... Many countries such as the Gulf states do not have income tax, others such as Singapore do not tax foreign remittances. The judgement, if true, has far reaching consequences. It would also be relatively easy for seafarers to claim residency/salary credit bank account of some other country such as UAE or Singapore. Are we going to tax all those who work in a country where there is no income tax?
Totally agree. Many seafarers are already planning to open accounts in Singapore if the Government decides to tax us.

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Originally Posted by vibbs View Post
I think it is ridiculous. I am not a seafarer anymore but for ages seafarers have been claiming NRI benefits and not with an intent to evade tax but genuinely believing that this is the way it is supposed to be.
Seafarers are always soft targets. Be it Port authorities, tax departments, government agencies, everyone treats us like criminals when seafarers are considered to be the most honest.

Quote:
BTW there have been more than one instance in past where IT departments effort to tax a seafarer who had completed the NRI requirement has been thwarted by court. Exact opposite to what has happened in this case.
There have been many such cases.

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Originally Posted by rdst_1 View Post
I don't see how they can discriminate between a seafarer and someone who works on 7-8 month contracts abroad a year. Either you change the rules for everyone or you don't. I am pretty sure no court could pass such a discriminatory ruling, if that's the case here.
Correct but the court has passed such a ruling. In fact there have been about 4 cases all in Kolkatta of this type. One of the victims is from my company.

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Originally Posted by nowwhat? View Post
Other countries residency or permanent residency requirements don't apply as we are talking of Indian tax status (NRI/RI). Someone can even be on a tourist visa abroad to be an NRI. Any seafarer can open a bank account in Singapore where income from foreign sources are not taxed thus making it appear that the income was not credited directly to the NRE account.
FYI "Any Seafarer" cannot just walk into a bank and open an account. You would have to be working for a company that has it's office in Singapore or whichever country you want to open an account. Then the company has to agree to give a letter to the bank with a valid reason for you to open an account. Some companies do it, some don't.

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The original report posted by @pedrolourenco is a hodgepodge of disparate facts and once again without seeing the entire judgement, any discussion on it is a waste of time.
Maybe it's a "hodgepodge of disparate facts" or "a waste of time" for people as it's our hard earned money and not theirs. I have attached a copy of the judgement which I took from the link in the original post. I hope you realise that it's what the court says and not me. We are not asking for any favour from the government. We are demanding our rights. The government had made laws allowing income of NRI's tax free to encourage people to send foreign exchange to India. If you or the government feels that our remmitances are so insignificant and you have much better sources of foreign exchange, feel free to change the law for all NRI's and watch the fun.
Attached Files
File Type: docx Shri Tapas Kumar Bandopadhyay.docx (31.2 KB, 105 views)

Last edited by pedrolourenco : 18th July 2016 at 00:06.
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Old 18th July 2016, 18:23   #932
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Originally Posted by DieselFan View Post
Please Note - 10K exception is only for savings bank interest and not FD interest. All FD interest have to be accounted and tax paid for by the individual on accrual basis.

Thanks for the correction.
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Old 20th July 2016, 11:55   #933
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by pedrolourenco View Post
Then why are people working in the Gulf allowed to escape without paying tax anywhere in the world.
This is what I mentioned by "far reaching consequences" in my earlier post. There are quite a few countries, especially oil-rich states, which do not have income tax. Moreover many other countries do not tax foreign income. India also does not have a double-taxation treaty (DTAA) with many countries.

On the other hand, some countries like the US have always taxed their citizens regardless of whether it is domestic or foreign income.

It is obvious that seafarers must band together and get a clarification from the Finance Minister on this matter.

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Originally Posted by pedrolourenco View Post
Attaching a copy.
Now that I have seen the judgement and bear in mind I am not a lawyer nor have I read the preceding judgments, this case has one complication that the appellant was employed through an Indian Agent "Great Offshore Ltd".

There is no doubt the appellant is an NRI and the tribunal is also not denying that.

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Originally Posted by pedrolourenco View Post
FYI "Any Seafarer" cannot just walk into a bank and open an account. You would have to be working for a company that has it's office in Singapore or whichever country you want to open an account. Then the company has to agree to give a letter to the bank with a valid reason for you to open an account. Some companies do it, some don't.
At one time, all one needed was a passport to open a bank account in Singapore. Panama also only needed a passport, maybe now it has changed.

Fact is if the sole criteria for income tax exemption is "If the place, where the recipient gets the money (on first occasion) under his control, is in India, it is said to be income received in India" then I am sure people would be creative enough to circumvent this and of course, remittances to India will drop as they may no longer park their funds in India.

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Originally Posted by pedrolourenco View Post
Maybe it's a "hodgepodge of disparate facts" or "a waste of time" for people as it's our hard earned money and not theirs. I have attached a copy of the judgement which I took from the link in the original post.
Regarding hodgepodge of facts, the article you initially posted quotes FATCA which is not even mentioned in the judgement. It also quotes DTAA whereas the judgement states DTAA is not applicable to seafarers.

Yes, it *was* a waste of time to discuss it without seeing the judgement.

Actually the link did not work for me back then, and it is still not working for me now.

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Originally Posted by pedrolourenco View Post
We are not asking for any favour from the government. We are demanding our rights. The government had made laws allowing income of NRI's tax free to encourage people to send foreign exchange to India. If you or the government feels that our remmitances are so insignificant and you have much better sources of foreign exchange, feel free to change the law for all NRI's and watch the fun.
Key word here is consistency and that is why I mentioned earlier that the Finance Ministry must clarify rather than the Income Tax Department who squeezes people all the time on one-off cases. India is also home to many inconsistent judgments from lower courts and tribunals that are rescinded when challenged in a higher court.

Question is do we really want to be like the US who taxes everyone willy-nilly? This is especially important to know as foreign remittances have kept India afloat many times in the past. Just 3 years ago, Finance Minister P. Chidambaram had to beg and borrow $24 billion as FCNR deposits at higher interest rates to prop up the rupee, this has now become a ticking time-bomb as all of it is due this year.

I have a master mariner in my family and I too am concerned what this judgement portends. Could you please post/PM the sites where seafarers are discussing this?
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Old 21st July 2016, 09:11   #934
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This must be some sort of a record. I filed the return on my wife (Nil return) online, on the 19th and have got the assessment order today. I must say I am astonished.
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Old 21st July 2016, 10:31   #935
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Originally Posted by sgiitk View Post
This must be some sort of a record. I filed the return on my wife (Nil return) online, on the 19th and have got the assessment order today. I must say I am astonished.
Sorry, the filing was on the 10th and the date of assessment is the 19th. Even they the whole thing being completed in just nine days. Must be some automatic filtering system at work.
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Old 23rd July 2016, 02:00   #936
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by nowwhat? View Post
I have a master mariner in my family and I too am concerned what this judgement portends. Could you please post/PM the sites where seafarers are discussing this?
Not much discussions on the net. There is a bit on the Jobships FB page but mostly the discussions are on Company specific WhatsApp groups.
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Old 24th July 2016, 16:38   #937
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

Should we re-enter all the bank account details again for AY 2016-17? When filing ITR, most details are pre-populated except the bank details entered last year When I declared all my account last year, why can't they use it this year too?
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Old 25th July 2016, 13:25   #938
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Which ITR should I file if income consists of both professional services as well as salary component.
The salary component is around 40% of total income for the relevant A.Y.
From next assessment year there'll be no income by rendering professional service i.e. complete income will be from salary.

Can I file ITR-1 and show the income from professional service under the head Income from Other Sources.
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Old 26th July 2016, 09:25   #939
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by Sherlocked View Post
Which ITR should I file if income consists of both professional services as well as salary component.
The salary component is around 40% of total income for the relevant A.Y.
From next assessment year there'll be no income by rendering professional service i.e. complete income will be from salary.

Can I file ITR-1 and show the income from professional service under the head Income from Other Sources.
I believe you would need to fill ITR 4S if you have had income from professional services not exceeding 60 lakhs
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Old 26th July 2016, 10:19   #940
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

This year, the IT department seems to have become hyperactive. They've been sending many emails with "Dear Taxpayer..." to remind about filing IT returns, about the voluntary income disclosure scheme, etc.

*The voluntary income disclosure scheme should target new assesses, what is the point of sending emails to existing taxpayers who have only salary as a source of income for many years ?
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Old 26th July 2016, 23:30   #941
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

My friend has some question -

My friend has opened a private account for herself & managing all by herself, her question is basically she received excess of 10000 interest on his saving account & also she invests regularly on FD & bank deducts TDS, she doesn't ask bank/IT department for tds amount refund.

Her brother files income tax on her name & she didn't told him about her personal account so they don't show that interests while filing ITR.

So she's worried what will happen, she's is in trouble or not

Hope you guys sort out the problem, cheers !

Last edited by unknown : 26th July 2016 at 23:31.
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Old 27th July 2016, 08:49   #942
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Her brother files income tax on her name & she didn't told him about her personal account so they don't show that interests while filing ITR.
1. The bank would have filed returns stating the amount of interest paid to your friend, and the TDS therein. These have to match with her returns.

2. Since last AY, it is mandatory to declare all bank accounts you own. Did she not do this at all?

I'd suggest she revise her AY 2015-16 returns including her interest income, and pay tax+interest+penalty therein.
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Old 27th July 2016, 15:12   #943
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@NPV; My sone who is required to submit his return with audit (same as last year) has also received the notification. For his the last date is 30/9 (or is it 31/10) what is the system up to?
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Old 27th July 2016, 16:58   #944
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@NPV; My sone who is required to submit his return with audit (same as last year) has also received the notification. For his the last date is 30/9 (or is it 31/10) what is the system up to?
For audit cases last date has historically been 30 September.
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Old 27th July 2016, 18:43   #945
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@NPV; My sone who is required to submit his return with audit (same as last year) has also received the notification.
Can someone please tell me what is "return with audit"?

I was thinking of filing someone's taxes this year with zero income, but I wonder if it would lead to further complications.
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