While foreign maritime salary is tax-free for an NRI seafarer, domestic Indian income—such as ancestral property rent, interest on NRO deposits, and local business returns—can push you into high tax brackets. Setting up an HUF is an established legal tax strategy.
How an HUF Works
A Hindu Undivided Family is treated as a separate taxable entity under the Income-tax Act, endowed with its own PAN card and independent basic exemption limit (₹2.5 Lakhs under Old Regime / ₹3 Lakhs under New Regime) plus Section 80C deductions.
Strategic Benefits for Mariner Families
- Divert domestic rental income to the HUF account.
- Invest family funds in mutual funds under the HUF PAN to utilize a fresh capital gains exemption limit.
- Significantly reduce your overall domestic household tax liability.