While mutual fund income dividends are subject to taxation,capital gain distributions are not subject to taxation.

Name: While mutual fund income dividends are subject to taxation,capital gain distributions are not subject to taxation.
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Capital gain distributions from mutual funds are also subject to taxation, similar to income dividends. These are taxed at the capital gains tax rate, depending on how long the fund held the assets before selling them.

While Mutual Fund Income Dividends Are Subject to Taxation,capital Gain