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Options
-
Income earned by a mutual fund is exempt from taxes
Correct answer
- B
10% plus surcharge and cess
- C
It depends on the investor's tax rate
- D
It depends on the type of income
Why this is the answer
Mutual funds are exempt from income tax, as they are structured as trusts for the benefit of unitholders. However, income earned by investors (unit holders) is taxable.
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