For Indian resident (Seafarer) NRE account holder what will be tax liability if they invest in debt Mutual fund and stay invested more than 3 years?
For merchant navy personnel the tax treatment will be similar to that of an NRI which is as follows
Long term capital gains (holding period of more than 3 years)
Listed debt funds are taxed at 10% without indexation or 20% with indexation whichever is lower but the fund house will deduct TDS at flat rate of 20%.
Unlisted debt funds are taxed at 10% without indexation.
Short term capital gains (holding period of less than 3 years)
Debt funds are taxed as per your income tax slab, but the TDS is deducted at the highest applicable rate of 30%, irrespective of what tax slab you belong to.