Indexation benefit: Discover how indexation helps reduce

Discover how indexation helps reduce tax liability on long-term investments by adjusting inflation. Learn about its benefits and recent changes in Budget 2024. The capital gains indexation calculator helps investors with long-term gains to save on taxes, allows the taxpayer to inflate the purchase price of the asset by considering the impact of inflation and also calculate the taxable gain by considering the sale price. Updated per latest Union Budget 2025 LATEST. Removal of indexation benefit on sale of property: Why 2001 is a critical year when selling your house Previously, individuals in India could leverage what is known as the ' indexation benefit ' to minimize the tax on the profit earned from selling a property. This benefit allowed the variance between the purchase and sale price of a property (i.e., the profit) to be adjusted by the prevailing inflation rate during the period when the property was owned. Therefore, it acted as a tool to ... Indexation is a tax benefit under Indian income tax laws that adjusts the purchase price (or cost of acquisition) of a long-term capital asset to account for inflation.