The tax that you'll pay on short-term capital gains follows the same tax brackets as ordinary income. Ordinary income is taxed at graduated rates depending on your income. It's possible that a short-term capital gain—or at least part of it—might be taxed at a higher rate than your r...
And that is how the Cost Inflation Index (CII) helps bring down your tax liability on LTCG considerably: by adjusting the purchase/investment amount against the CII value of the relevant financial years of purchase and sale. If you are amutual fund investor, then the Cost Inflation Index can...