⚠️ Didn’t File Your ITR? A Tax Notice May Be on Its Way!

Dear Seafarer,

If you've received a notice from the Income Tax Department, - you're not alone🙌 An Income Tax Notice is a formal communication indicating a discrepancy or asking for clarification. As a seafarer, with income earned overseas and transactions back home, such notices can occur — but responding timely and correctly is the key. ✅

⚠️ Common Reasons Why Seafarers May Receive a Notice:

 

1. Errors or Omissions in Income Tax Return (ITR)

📝 If you’ve mistakenly underreported or missed mentioning any income source in your ITR — such as:

 

• NRO account interest

• Rental income from property in India

• Capital gains from investments or mutual funds

— the Income Tax Department’s system may detect these mismatches when cross-verifying with Form 26AS, AIS (Annual Information Statement), and other financial databases. This leads to a notice under Section 139(9) or 143(1).

2. Unreported High-Value Transactions 💸

Even if your primary income is earned abroad, certain high-value transactions within India can raise red flags if not properly disclosed. Examples include:

• Cash deposits > ₹10 Lakhs/year in savings accounts

• Cash deposits or withdrawals > ₹50 Lakhs/year in current accounts

• Payments of ₹1 Lakh+ in cash or ₹10 Lakhs+ by any mode towards credit cards

• Purchase or sale of property exceeding ₹30 Lakhs

• Cash receipts > ₹2 Lakhs for sale of goods/services

🧾 These are tracked via your PAN and reported by banks and registrars. If not reflected in your return, a notice could be sent under Section 148A or 133(6).

3. Non-Filing of Income Tax Return🧍‍♂️📆

As a Seafarer, if your residential status is Resident, or if you spent fewer days outside India than required, your global income becomes taxable. Failing to file your return can attract notices under Section 142(1) or 148.

Even NRI Seafarers should always file ITR specially for the below purpose:

• TDS has been deducted in India (e.g., NRO interest)

• They wish to claim refunds

• They’ve sold capital assets (shares, property, etc.)

4. Non-Disclosure of Interest Income 💰

It’s a common oversight by Seafarers to forget reporting. These are visible to the IT Department through Form 26AS or AIS. If not declared, expect a notice seeking clarification or correction.

• Interest earned on NRO accounts

• FD interest on Indian bank accounts

• Savings interest (if PAN linked)

5. TDS Mismatch 🧾🔍

There could be a mismatch between:

• TDS reported by the deductor (banks, tenants, employers)

• Income declared by you in your ITR

Example: A bank deducts TDS on your NRO FD, but you don’t show this interest income — leading to discrepancies. Such errors usually generate a notice under Section 143(1)(a) or may need a rectification or revised return.

6. False or Inflated Deduction Claims 🚫

Sometimes in good faith (or misguidance), Seafarers claim deductions or exemptions they aren’t eligible. The department can verify many of these through AIS, bank data, or third-party reporting — and issue notices under Section 143(2) for scrutiny. Example may include:

• Fake rent receipts for HRA exemption (especially if living abroad)

• Claiming Section 80C or 80D deductions without receipts or valid payments

• Using incorrect 80G donations without proper documentation 

  
  

7. Random Scrutiny Assessments 🔄

The Income Tax Department also performs random assessments under Section 143(2) to ensure tax compliance. Even if everything is filed correctly, you might be chosen for routine verification. 

Don’t panic — respond with the requested documents to close the scrutiny peacefully.

Because you have international travel, foreign-sourced income, multiple accounts, and possible double taxation concerns, your ITR filing must be extremely precise. Small mismatches, even unintended, can trigger automated notices.

Warm Regards,

Team SeafarersTax.Org