How to use TaxAdda's NRE days calculator?
- Step 1 :Select the Financial year for which you want to determine the Residential status
- Step 2 :Select purpose of visit outside India
- Step 3 :Enter date of departure from India
- Step 4 :Enter date of arrival in India
- Step 5 :Click on calculate
How are NRE days calculated?
The total days outside India are calculated using the purpose of visit, departure & arrival date entered by the user. The day of arrival and day of departure is considered in India in our calculator for seafarer side. The proof document for calculation is passport & CDC (Continuous Discharge Certificate)
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Frequently asked questions
What is Residential Status concept under Income Tax?
Residential status is the first step to determine taxability of your Income in India. It is required to find out for every financial year to compute your taxes in India.
What are the types of Residential Status?
There are two Residential status in Income Tax, first is Resident & second is Non-Resident. Resident Status is further categorised into Ordinary Resident (ROR) & Not Ordinary Resident (RNOR).
How is the Residential status of a person relevant for determining the taxability of the income in his hands?
- Residential status of the person as per the Income-tax Law; and
- Nature of income earned by him
Are Seafarers NRI?
Yes, if you are outside India for more than 184 days (or 185 days in a leap year) as per your CDC/passport then you are considered Non-Resident India under Income Tax Act 1961.
What is the source document to calculate days outside India of a Seafarer (Merchant Navy)?
The proof document for calculation of days outside India is CDC (Continuous Discharge Certificate) as per Rule 126 of Income Tax Rules
Whether 120 days Rule (Deemed Resident) for determining Residential Status in Budget 2020 is applicable on Seafarers?
No, 120 days Rule (Deemed Resident) is not applicable to Seafarers.
I am out of India for 15 days for attending a seminar on behalf of my company. Shall I count that 15 days to find out my resident status?
You may count these 15 days outside India for the purpose of employment. You must have some documentary evidence from your company which proves that the purpose of the visit is for employment.
How should I compute my days out of India if I joined a Indian flag ship from Hongkong and after 3 months of sailing it become Indian coastal ship?
You time period till the ship converted to Indian coastal ship shall be counted as period outside India. Once a ship is converted into Indian coastal ship the time period spent in Indian coastal waters should not be counted.
I have changed my shipping company. Does it impact my taxation in any manner?
No, it will not. You just have to complete 184 days (or 185 in case of a leap year) to maintain your non-resident status.
I have joined a foreign-flagged shipped from USA and get sign off from Mumbai. Should I use my passport or CDC to count the days outside India?
You should use your CDC stamping dates for counting days outside India as your voyage ends in India.
I am short for 8 days. Can I leave India for vacation and maintain my NRE status and save tax?
No, as per Income Tax Act, only the period outside India for the purpose of employment shall be considered. You may ask to submit documentary evidence to prove the visit is for the purpose of employment in case the scrutiny is initiated against the filed return.
I was outside India for 186 days during the financial year 2024-25. Is my salary receipt taxable in India?
Your salary will be tax-free if you were outside India for more than 184 days for the purpose of employment.
Whether date of departure will be considered in india or outside India?
The day of departure is always considered outside India as per Sec 9 of the General clauses Act which explains commencement and termination of time, that if a word uses “from”, then, first day in a series of days shall be excluded, likewise if the word uses “to” day in the last series is to be included same withheld in the Income Tax Appellate Tribunal – Kolkata Samir Kumar Ghosh, Howrah vs Ito, Wd-16(4), Kolkata.
Whether date of arrival will be considered in india or outside India?
The day of arrival is also considered outside India as withheld in the Income Tax Appellate Tribunal – Kolkata Samir Kumar Ghosh, Howrah vs Ito, Wd-16(4), Kolkata or calculation is required to be done on an hourly basis as withheld in the Income Tax Appellate Tribunal - Lucknow Shri Sharad Mishra Vs ITO.
Is purpose of stay outside India is relevant for determing Residential Status of Seafarers?
Yes, Your stay outside India for the purpose of employment only, will be taken in calculation of NRE days.