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Calculating and paying mutual funds taxes

When I sell my mutual fund units and if the profit comes as taxable then how can I calculate and pay the taxes?
and How can I ensure that the taxes calculated by me are correct (with/ with out indexation)? where and how I should document that I sold my x mutual fund units and paid y amount of tax based on CII etc, etc.

one suggestion: A detailed post by manish would be more useful on this.

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