Rule 44: Non-resident cruise ship conditions
Rule 44 sets conditions for a non-resident operating cruise ships under the specified section 61 entry. The vessel, facilities, itinerary and primary use must meet the rule’s requirements.
Official notified Income-tax Rules, 2026Need advice on Rule 44?
This article is for general information. Read the official Rules and applicable Act amendments, including the Taxation and Other Laws (Amendment) Act, 2026. If you need professional advice for your situation, contact Bizeneed.
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Bare law
Rule 44 - Conditions to be fulfilled by a non-resident, engaged in the business of operation of cruise ships under section 61(2) [Table: Sl. No. 2]
For the purposes of section 61(2) [Table: Sl. No. 2], a non-resident assessee, engaged in the business of operation of cruise ships shall, — (a) operate a passenger ship having a carrying capacity of more than two hundred passengers or length of seventy-five meters or more, for leisure and recreational purposes and having appropriate dining and cabin facilities for passengers; (b) operate such ship on scheduled voyage or shore excursion touching at least two sea ports of India or same sea ports of India twice; (c) operate such ship primarily for carrying passengers and not for carrying cargo; and (d) operate such ship as per the procedure and guidelines if any, issued by the Ministry of Tourism or Ministry of Ports, Shipping and Waterways.
Rule breakdown
Check the alternative size threshold
The passenger ship must have capacity for more than 200 passengers or be at least 75 metres long. The two size measures are alternatives, not cumulative requirements.
A capacity of exactly 200 does not satisfy the first limb by itself; a length of exactly 75 metres satisfies the length limb. The other conditions remain applicable.
Leisure purpose and passenger facilities
The ship must operate for leisure and recreational purposes and have appropriate dining and cabin facilities for passengers.
Document the vessel’s use and facilities. Meeting a size threshold alone does not establish the entire rule.
Check the Indian-port itinerary
Operate on a scheduled voyage or shore excursion touching at least two Indian sea ports, or the same Indian sea port twice.
Keep the actual itinerary and port-call records. Do not replace the text with an assumption that any voyage touching India once is sufficient.
Primary passenger use and applicable guidelines
The ship must operate primarily to carry passengers rather than cargo. Operations must also follow any procedure and guidelines issued by the Ministry of Tourism or the Ministry of Ports, Shipping and Waterways.
Read these conditions with the parent section 61 entry. The rule does not itself compute the business income or the final income-tax liability.
Practical eligibility file
Retain the vessel specifications, passenger capacity, facilities, scheduled route and port-call evidence. Confirm the applicable ministry procedures and the non-resident operator’s status.
Hypothetical: a 76-metre leisure passenger ship with capacity of 180 meets the alternative length test. It still needs the required facilities, itinerary, primary passenger use and other applicable conditions.
Key takeaways
Size alternatives
More than 200 passengers or length at least 75 metres.
Indian port calls
At least two Indian sea ports or the same Indian sea port twice.
Passenger operation
Leisure facilities and primary passenger use remain required.
Practical checklist
- Document vessel capacity or length and passenger facilities.
- Keep itinerary and port-call records.
- Check applicable ministry procedures and the parent section.
Avoid
- Do not treat one qualifying feature as satisfying every condition.
- Do not equate the presumptive income computation with the final tax rate.
FAQs
Must both the capacity and length thresholds be met?
No. Clause (a) connects those thresholds with “or”, while its other conditions still apply.
Is one visit to one Indian port enough under the stated route condition?
The rule specifies at least two Indian sea ports or the same Indian sea port twice.
Does satisfying Rule 44 determine the final tax payable?
No. It supplies conditions for the relevant section 61 provision; the applicable computation and tax rules must also be considered.
Glossary
- Alternative size test
- The more-than-200-passenger capacity or at-least-75-metre length condition.
- Primary passenger use
- Operating principally to carry passengers rather than cargo under clause (c).