SC issues notice to Centre on seafarers' plea for income tax concession due to Covid-19

The Supreme Court on Wednesday sought a response from the Union government on a plea questioning its refusal to grant Income Tax relaxation to seafarers, who were forced to stay back in the country due to the Covid-19 situation across the world.

A bench of Justices R F Nariman, Navin Sinha and K M Joseph issued notice to the Centre on a writ petition filed by advocate Raj Kishore Choudhary on behalf of 'Merchant Navy Officers and Ladies Association'.

The petitioner-organisation led by advocate Prabhjot Singh challenged of validity of May 8, 2020 notification by the Finance Ministry's, Central Board of Direct Taxes that had denied the seafarers (who enjoyed non resident status) concessions in assessing Income Tax for financial year 2019-20 and 2020-21 on compassionate ground due to Covid-19. It sought a direction for a concession of minimum 60 days.

Due to pandemic, the seafarers could not join the ships and were forced to stay in India for 182 days in 2019-2020 and the same handicap would continue in next financial year, they pointed out.

"The Covid-19 outbreak has created an unprecedented situation worldwide. The governments around the world have restricted the travel and closed borders. Around 90,000 seafarers were stuck on board and even forced to stay back in India, requiring a liberal interpretation of the tax policy," the plea said.