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Do mutual funds pay income tax?

Mutual funds do not pay taxes as they are pass-through entities which pass on the benefit to investors

Are mutual funds subject to the same tax provisions? Do they pay Income Tax on short-term capital gains?
- Godbole

Mutual funds do not pay taxes on investment come, dividends and capital gains, as mutual funds are considered a conduit or pass-through entity which pass on the benefits to investors.

This article was originally published on October 09, 2015.

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