I am planning to Shrink a DB thats been in use for several months. I was going through information in this link - http://technet.microsoft.com/en-us/library/ms189080(v=sql.105).aspx and came to know if the Database is been using indexes, not to shrink (under Best practices). 

I was also running the SQL query which I found in this web site - http://blog.sqlauthority.com/2008/10/03/sql-server-2008-find-if-index-is-being-used-in-database/ and found that the Index is been used in the particular DB. 

I am new to Shrinking DB, Can you please let me know if thats fine to Shrink or any good practice to follow...??? Please let me k

You are correct, you should not shrink the data file because it will cause huge index fragmentation, but you can shrink the log file.

Refer the below link to know more about it.

https://www.sqlskills.com/blogs/paul/why-you-should-not-shrink-your-data-files/

• Proposed as answer by Fanny LiuMicrosoft contingent staff, Moderator 2 hours 46 minutes ago

What is the reason for db shrinking?

BOL: http://technet.microsoft.com/en-us/library/ms189035.aspx

Can you post the results of:

use YourDatabase;
exec sp_spaceused;

One more (by Tibor)http://www.karaszi.com/SQLServer/info_dont_shrink.asp

Here is another good resource available which is having equipped with several prominent features. It could also be a helpful approach while need to shrink the database.