A non-resident who is carrying on a shipping business and earns income from carrying passengers/ livestock/ goods from a port in India, will be charged income-tax before the ship is allowed to leave the Indian port. Therefore, before the ship leaves the Indian port, the master of the ship is under an obligation to furnish a return of the full amount earned on account of fare and frieght and pay the tax accordingly. In the case 7.5% of the amount of fare/frieght/charge,etc. shall be deemed to be income of such assessee on which the income-tax will be charged. Therefore, in this case the tax is chargeable on the income in the same year in which it is earned.
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