Calculating the number of days spent outside of India is a common question among individuals who work in the merchandising industry. It’s important to know this information as it determines whether you qualify for the Non-Resident Indian (NRI) status. If you stay outside of India for less than 182 days in a year, then you may be eligible for NRI status, which exempts foreign income from taxation.
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So, how do you calculate the number of days spent outside of India? This question can be answered in a simple and practical way. The immigration officer will consider the stamp on your passport when you leave India as the first day you spend outside of India if you travel outside of India for work, such as joining a ship in a foreign country. On the other hand, if you are joining a ship that is in Indian waters, the stamp on your Continuous Discharge Certificate (CDC) when you join the ship will be considered as the first day spent outside of India, even if the ship is still in Indian waters.
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It’s important to keep track of the number of days spent outside of India as it impacts your tax liability. If you qualify for NRI status, most of your foreign income, such as income received from merchant navy ships or contracts, will be exempt from taxation. However, any income earned in India, such as rent, dividends, or interest, will be taxable, and you will need to file an income tax return.
In summary, calculating the number of days spent outside of India is crucial for determining your tax status. Remember to keep track of your immigration and CDC stamps to accurately calculate your days spent outside of India. If you qualify for NRI status, it can save you from paying taxes on foreign income