I come under the 10 per cent tax bracket. I want to know if I should go for the indexation benefit.
-Rajesh Tiwari
Your tax bracket doesn’t matter; you should be guided by the benefit that you will derive. When you invest in fixed income funds, you have the choice of paying 10 per cent flat as your capital gains tax or 20 per cent with indexation. If it’s a long-term capital asset and even after paying 20 per cent with indexation, your tax liability will be low, then choose that option.
This article was originally published on July 04, 2012.
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