Indexation benefit: Indexation helps to reduce the tax on

Indexation helps to reduce the tax on long-term capital gains for immovable property. Learn how indexation works, explained with an example. 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. Learn how capital gain benefits with and without indexation impact your taxes. Understand STCG vs LTCG, indexation rules, and how to reduce tax via set-off and carry forward of capital losses. 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 ...