Rule 8: Stay in India for qualifying ship crew
Rule 8 specifies a period excluded from stay in India for an Indian citizen serving as crew on a foreign-bound ship, for section 6(6). The exclusion is tied to an eligible voyage and the joining and signing-off entries in the Continuous Discharge Certificate.
Official notified Income-tax Rules, 2026Need advice on Rule 8?
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Bare law
Rule 8 - Computation of period of stay in India for an Indian citizen, being a member of the crew of a foreign bound ship
(1) For the purposes of section 6(6), in case of an individual, being a citizen of India and a member of the crew of a foreign bound ship, the period or periods of stay in India in respect of an eligible voyage, shall not include the period computed under sub-rule (2).
(2) The period referred to in sub-rule (1) shall be the period beginning on the date entered into the Continuous Discharge Certificate in respect of joining the ship by the said individual for the eligible voyage and ending on the date entered into the Continuous Discharge Certificate in respect of signing off by that individual from the ship in respect of such voyage.
(3) For the purposes of this rule, — (a) ―Continuous Discharge Certificate‖ shall have the same meaning as assigned to it in the Merchant Shipping (Continuous Discharge Certificate-cum-Seafarer's Identity Document) Rules, 2001 made under the Merchant Shipping Act, 1958 (44 of 1958); (b) ―eligible voyage‖ shall mean a voyage undertaken by a ship engaged in the carriage of passengers or freight in international traffic, where — (i) for the voyage having originated from any port in India, has as its destination any port outside India; and (ii) for the voyage having originated from any port outside India, has as its destination any port in India.
Introduction
This is a residence day-count rule, not a blanket income exemption or a declaration that every seafarer is non-resident. Apply it within the relevant residence provision and check the person’s other stay and circumstances.
Rule breakdown
Check the person and the voyage
Confirm Indian citizenship, crew status and the relevant foreign-bound ship. Then check the eligible-voyage definition: the ship must carry passengers or freight in international traffic, with the stated Indian-to-foreign or foreign-to-Indian port pattern.
A job title such as seafarer, a foreign employer or a foreign vessel flag does not by itself prove every condition. A wholly domestic voyage should not be assumed to qualify under this definition.
Read the Continuous Discharge Certificate entries
The excluded period begins on the date entered for joining the ship for the eligible voyage and ends on the recorded signing-off date for that voyage. Match the entries to the individual and the actual voyage.
The rule supplies a particular documentary measure. Keep the certificate with voyage and travel records, and resolve inconsistent entries before relying on the day count. An unrelated leave period is not automatically part of the exclusion.
Illustration of the relevant dates
Hypothetical: the certificate records joining on 10 June and signing off on 20 August for a qualifying international voyage. Rule 8 identifies that recorded beginning-to-ending period for exclusion. The remaining section 6 residence calculation must still account for the person’s other periods and applicable conditions; this example does not declare the person non-resident.
Separate residence from taxability of income
After computing the relevant stay, determine residence under the applicable Act provisions. Then consider the scope and source of income under the separate charging and taxability rules.
The rule does not say that all seafarer salary is exempt, that every overseas receipt is outside Indian tax, or that any particular foreign bank account determines residence. Those questions need their own facts and provisions.
A practical record-check sequence
Confirm citizenship and crew engagement; identify each eligible voyage and its port endpoints; reconcile the certificate joining/signing-off dates; record the period excluded under Rule 8; and apply the relevant residence tests to the complete tax-year facts. Retain a clear computation and supporting records.
Key takeaways
Person and voyage both matter
The rule concerns an Indian citizen who is a crew member of a foreign-bound ship and the period relating to an eligible voyage.
Certificate dates define the period
Use the recorded joining date and signing-off date for that voyage in the Continuous Discharge Certificate.
International route requirement
The eligible-voyage definition addresses passenger or freight carriage in international traffic between an Indian port and a port outside India, in the stated directions.
Complete the residence analysis
The excluded period is one part of the section 6 analysis; it does not itself exempt all remuneration or resolve every residence test.
Practical checklist
- Match certificate entries to the individual and the eligible voyage.
- Record Indian and foreign port endpoints and the nature of the carriage.
- Reconcile all other stay periods when applying section 6.
- Review income taxability separately after determining residence.
Avoid
- Do not infer non-resident status from the occupation alone.
- Do not substitute an unrelated leave period for the certificate-based voyage period.
- Do not present this day-count rule as an automatic salary exemption.
FAQs
Does Rule 8 automatically make every seafarer non-resident?
No. It specifies an excluded period for the qualifying person and voyage. The relevant residence tests still have to be applied to the complete facts.
Which dates determine the excluded period?
The Continuous Discharge Certificate date for joining the ship for the eligible voyage and the certificate date for signing off that voyage.
Does the rule cover any voyage on a ship?
No. The eligible-voyage definition requires passenger or freight carriage in international traffic and the stated India/foreign port route conditions.
Is salary automatically exempt because the voyage period is excluded?
No. Residence day-count treatment and the taxability of particular income are separate questions.
Glossary
- Continuous Discharge Certificate
- The certificate defined by reference to the Merchant Shipping rules specified in sub-rule (3)(a), containing the relevant joining and signing-off entries.
- Eligible voyage
- A voyage meeting the international carriage and Indian/foreign port conditions in sub-rule (3)(b).