We are in the month of March and the mutual fund market is flooded with new fund offers from almost all the leading asset management companies. Most of these are closed ended debt oriented plans with tenure of three years and above.
The previous post on capital gains mentions two ways of taxation for various asset classes- 10 % without indexation, and 20 % with indexation. What exactly is indexation, why is it required, and how to arrive at the indexed value? Let us find out –