Seafarers Receiving Notices Under Section 133(6): What the CBDT’s Latest Compliance Drive Means

Recently, a number of seafarers, especially those based in Uttar Pradesh, have started receiving notices from the Income Tax Department under Section 133(6) of the Income-tax Act, 1961. These notices request details such as foreign income, CDC reports, and copies of ITRs for FY 2023-24 and FY 2024-25.

This development has raised concerns among seafarers. At Tax Harbour, we are committed to providing clarity and guidance. This article explains why these notices are being issued, what the latest CBDT press release states, and how seafarers should stay compliant going forward.

1. Background: CBDT’s New Compliance Campaign

On 27 November 2025, the Central Board of Direct Taxes (CBDT) issued an official press release  (link https://incometaxindia.gov.in/Lists/Press%20Releases/Attachments/1234/PressRelease-CBDT-launches-2nd-NUDGE-initiative-to-strengthen-voluntary-compliance-in-respect-of-Foreign-Assets.pdf) announcing Phase-II of its “NUDGE” Compliance & Awareness Campaign.

Key Highlights from the Press Release

The Income Tax Department has received extensive foreign income and foreign asset information from partner jurisdictions under CRS (Common Reporting Standard) and FATCA agreements.

This data is being matched with ITR filings to identify cases where foreign-source income or foreign assets may not have been correctly reported.

Taxpayers flagged as high-risk are being contacted through notices, emails, SMS alerts, or formal information requests.

CBDT has clearly stated that taxpayers will get a fair opportunity to correct omissions, but non-compliance may attract serious consequences under the Income-tax Act or the Black Money (Undisclosed Foreign Income and Assets) Act, 2015.

This marks a significant shift in the department’s approach. Foreign income reporting is now under active and ongoing scrutiny.

2. Why Seafarers Are Receiving Section 133(6) Notices

Seafarers are among the largest category of Indian taxpayers with:

·       Foreign-source salary

·       Overseas employment contracts

·       Regular ship movements captured in CDC

·       Immigration data recorded in passports

·       Foreign bank credits into NRE/NRO accounts

Given this, the compliance systems may automatically flag cases where:

·       NRI days for the financial year are not completed

·       Foreign salary is received but not declared in the ITR in case of NRI days not completed

·       Passport/CDC entries and ITR disclosures do not match

·       TAN-based filings by shipping companies indicate salary details not shown in ITR

This is why the current notices specifically ask for:

·       CDC issued by DG Shipping

·       Foreign income details

·       Copies of ITRs

These notices are part of data-verification, not allegations of wrongdoing.

3. Importance of filing ITR on time, especially when NRI days are not completed

Many seafarers assume their income is automatically exempt. However, this is not true if the NRI days are not completed. In such cases, foreign salary becomes taxable in India. Tax must be paid before filing the return. Non-disclosure or late filing can trigger notices, interest, penalties, or further enquiries.

Given the CBDT’s intensified foreign-data matching, correct and timely ITR filing is now more important than ever.

4. What Seafarers Should Do Now

To stay compliant and avoid scrutiny:

·       File your ITR every year on time

·        Declare foreign salary and pay tax if NRI criteria is not met.

·        Maintain complete records:

o   CDC

o   Passport sign-on/sign-off pages

o   Salary slips

o   Bank statements

o   Employment contracts

·        Respond to notices promptly

·       File an Updated ITR under Section 139(8A), if any foreign income was missed earlier, filing an updated return is the safest course of action.

5. Final Thoughts: Compliance Now Comes with Clarity

The latest CBDT press release shows that foreign income monitoring is no longer restricted to high-value cases, it is now systemic, automated, and PAN-India.

For seafarers, this means:

Your foreign credits

Your CDC movements

Your immigration records

Your bank transactions

are all being matched to your ITR filings.

Filing your returns accurately and on time, especially when NRI days are not completed, is the best way to stay compliant and avoid unnecessary stress.

For support or queries, feel free to contact our team, we are always ready to help the seafarer community.

CA Jaya Mittal

9821617961