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NSM General NISM
Medium

What is the tax applicable on the income earned by the mutual fund schemes?

Practice question from TAXATION Test — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    It is a function of the type of income since dividends, short term capital gains and long-term capital gains attract different tax rates

  2. Income earned by a mutual fund is exempt from taxes

    Correct answer

  3. C

    10 percent plus surcharge and cess

  4. D

    It is a function of the marginal rate of tax applicable to the respective investor in the mutual fund scheme

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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