Rule 8 of the DraftIncome-tax Rules, 2026 provides the method for computing the period of stay in India for an Indian citizen who is a member of the crew of a foreign bound ship, for the purposes of section 6(6) relating to residential status. It specifies that, in respect of an eligible voyage, the period of stay in India shall exclude the time computed under sub-rule (2). The excluded period begins on the date recorded in the Continuous Discharge Certificate (CDC) for joining the ship for the eligible voyage and ends on the date recorded in the CDC for signing off from that voyage. Thus, the duration between the recorded joining and signing off dates in the CDC will not be counted as stay in India.
The rule further defines “Continuous Discharge Certificate” as per the Merchant Shipping (Continuous Discharge Certificate-cum-Seafarer’s Identity Document) Rules, 2001 under the Merchant Shipping Act, 1958. An “eligible voyage” is defined as a voyage involving international traffic where a ship carries passengers or freight either from a port in India to a port outside India or from a port outside India to a port in India. The provision ensures clarity in determining residential status for seafarers engaged in international voyages.
Extract of Rule No. 8 of Draft Income-tax Rules, 2026
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 meaning 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.
