Taxation of Debt mutual fund for NRIs

Taxation
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For debt funds which are bought after 1st Apr 2023 , understand that all gains will be taxed at slab rate in which we are falling.So incase I have debt mutual funds which are bought after 1st Apr 2023 and sold with capital gain of Rs. 10000 then this this amount will be charged as per income tax slab right. But for me currently there is no tax as income is very less in India (being an NRI, ttal income less than 5 Lakh)…then this 10000 is also tax free for me?

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Tax liability could be zero but there might be a TDS as you are a NRI which will be returned when you file returns.
@Quicko - please address.

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Short-term capital gains arising from debt mutual funds purchased on or after 1 April 2023 are deemed to be STCG and are taxable at the applicable slab rates. However, since you are an NRI, the rebate under section 87A is not available. You can only avail the basic exemption limit—₹4,00,000 under the new tax regime or ₹2,50,000 under the old tax regime. Accordingly, if your total taxable income, including the capital gain of ₹10,000, remains within the applicable basic exemption limit, no tax will be payable. If it exceeds this limit, the capital gain will be taxed as per your applicable slab rate.

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Thanks for the info. Hence for resident indian, any gains from debt mutual funds will eventually have no tax if the total income is less than 12 Lakh considering new tax regime. I hope my understanding is correct. Also where we will add this income in ITR…is there any place where it tells to add such income considering slab rate?

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@sandeep0604

Yes, your understanding is correct, if your total income including STCG taxable at slab rate is less than Rs.12 lakh, then there is no tax in case of resident. This income needs to be reported in Schedule CG in point no. A(I) item no.6 in the ITR.

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THanks