How to abide by the law while Investing as seafarers ?
Last updated on March 10th, 2023 at 10:55 am
Living on a ship for months is not easy at all. Seafarers have to physically and mentally train themselves to face harsh circumstances every day. Due to the lack of information available on various subjects, seafarers sometimes tend to miss out on important rules set up for them by the government. Being given the status of NRI, they receive few benefits in terms of taxation. But is the benefit of any use if you are unaware of how to use it? We have seen merchant navy professionals working for years on ships but still are not completely familiar with a few easy steps that can save them time and money while investing big.
Keep your documents up-to-date.
We seafarers are very good at handling documentation and paperwork. In maritime recruitment and crew planning, we are familiar with many documentation processes that are required on a daily basis. Be it a contract, seafarer’s visa, passport, medical health certificate, or qualifications, the list is never-ending. Now, if your ship’s captain asks for a specific document, imagine how long it might take to rummage for that piece of paper if you have not neatly arranged it in one place. Nobody wants to upset the Captain, right? So, wouldn’t it be nice if you could wrestle all of this paperwork under control? You can also use various document management systems that are available online. But that does not mean you are not required to make a tidy arrangement of all your original documents and photocopies according to year. It enhances seafarers’ efficiency while helping them keep track of certificates or contracts expiring.
NRE Account for every seafarer
- A Seafarer’s Account is an NRE (Non-Resident External) Savings Account specially created for mariners to manage their finances easily and conveniently, even while they are away from India. If you are going to ask, is every seafarer from the merchant navy required to have an NRE account in his name? The answer is an absolute Yes. If you deposit your income in any domestic account operated by the country’s residents, chances are you are not getting any tax exemption. NRE account is for a seafarer while purchasing expensive properties like land, house, car, etc., as it facilitates easy movement of funds. Many seafarers are not aware of the benefits the NRE account comes with. So, if you are a sailing professional or aspiring to be one, make sure you avail all the benefits of having a tax-free income.
Investment with a nominee name for seafarers
Being a seafarer is like saying yes to risks every day. We understand why you are so into making investments for insurance, properties, and whatnot. Securing the future of the near and dear ones after you are gone is essential. Have you wondered, what if you did everything right, from buying the correct insurance policy to planning for your kid’s bright future, but somehow it was not enough? In such cases, while taking any insurance or making an investment, always remember to file for the nominee. If you are the first applicant and your wife is the second applicant, you should have your kids covered under these plans as nominees. Suppose a seafarer’s family suffers a sudden demise of him/her making them financially vulnerable. In such instances, the investment made by the seafarer during his/her life can be transferred to the nominee smoothly without any legal hassle. Hence, do not forget to add nominees to your list while making any investment.
Sailing does not always come up with a perfect picture, but it does provide you with a set of life-long experiences. While you earn, spend, save and invest, you start realizing how important financial management matters are. We know it might be difficult to get used to being an NRI seafarer exposed to completely different rules on land. But it is a matter of time before you will learn.