Income Tax News: In a bid to enhance investment and employment in India’s cruise tourism sector, the Central Board of Direct Taxes (CBDT) has introduced amendments in the Income Tax Rules. These changes aim to offer a presumptive taxation regime for non-resident cruise ship operators, providing a clear path for tax benefits in the cruise shipping business. This move is part of the larger strategy by the Centre to make India an attractive destination for cruise tourism.
New Rules for Non-Resident Cruise Ship Operators
As per the new rules announced under the Finance Act 2024, non-resident cruise ship operators will now be eligible for a presumptive taxation regime. This is designed to simplify the tax filing process and promote investment in the cruise shipping industry. The new regulations are aimed at making it easier for international cruise operators to do business in India while complying with simplified tax norms.
Exemption on Income from Lease Rentals
The Centre has also provided an exemption for income earned by foreign companies from leasing cruise ships. This exemption applies to lease rentals received from related companies operating such ships within India. This move aims to encourage international cruise companies to lease their ships in India, further boosting the country's cruise tourism infrastructure.
Cruise Bharat Mission to Promote Tourism
The introduction of these tax reforms is part of the Centre’s broader strategy to enhance cruise tourism in India. Along with the tax changes, the government has launched the five-year Cruise Bharat Mission, aiming to attract 1 million passengers and create over 400,000 jobs by 2029. This mission focuses on building world-class infrastructure, easing regulations, and providing financial incentives to stakeholders in the cruise industry. The ultimate goal is to position India as a global cruise tourism hub.