Income from mutual fund is taxable?

If we get income by selling shares within the year income tax is 10% ,if we sell share after 366 days no income tax is levied.And what about mutual funds income.Is the same rule apply or something else.

Please note that the above answer not or India.

Taxation on equity based Mutual Funds income:(Capital Gains): as per Indian Income Tax.

Short term Cap. Gains (Sold before 12 months of holding):
It is 10% flat (Just like shares).

Long Term Cap. Gains (Sold after 1 year):
It is 20% if indexation is applied. Other wise flat 10%. It is better to opt for 10% flat rate when there are gains so that the gains will be less and tax will be less.

In case of loss, it is better to go for indexation which will increase the losses and will be useful to set off againest mutual funds long term capital gains in the next coming 8 years.

http://in.mutualfunds.yahoo.com/list/031...

This is a frequenlty misunderstood aspect of buying in to mutual funds. The capital gains are always treated as long term (more than 365 calendar days}.
A mutual fund is a regulated investment company that pools funds of investors allowing them to take advantage of a diversity of investments and professional asset management. You own shares in the fund, but the fund owns assets such as shares of stock, corporate bonds, government obligations, etc. One of the ways the fund makes money for its investors is to sell these assets at a gain. If the asset was held by the mutual fund for more than one year, the nature of the income is capital gain, which gets passed on to you. These are called capital gain distributions, which are distinguished on Form 1099-DIV (PDF), from income that is from other profits, called ordinary dividends.

You always have to pay tax on interest, dividends and capital gains in a stock fund or mutual fund, even if the shares are reinvested.

What's New for 2008
Maximum tax rate on qualified dividends and net capital gain reduced. In tax years beginning after 2007, the 5% maximum tax rate on qualified dividends and net capital gain is reduced to 0 (zero)%. Thus, qualified dividends and net capital gain are not taxed if the regular tax rate that would apply to them is lower than 25%.

No, not taxable.

mutual fund dividents are not taxable

WELL APART FROM THE ANSWERS ALREADY VISIBLE, IT ALSO DEPENDS ON THE KIND OF MUTUAL FUND IT IS. IT BASICALLY DEPENDS UPON THE % EXPOSURE OF THE EQUITY HOLDING OF THE MF IN INDIA.