Tax
Indexation Kya Hai? — Matlab, Definition & Example
Definition
Indexation ek method hai jisme Cost Inflation Index (CII) use karke asset ka purchase price inflation ke hisaab se adjust kiya jaata hai. Isse taxable LTCG kam ho jaata hai.
💡 Real Example
Property bought for ₹50 lakh in 2015 (CII 254) sold in 2024 (CII 363): Indexed cost = 50L × (363/254) = ₹71.46 lakh. If sold at ₹90 lakh, taxable gain = ₹18.54 lakh instead of ₹40 lakh.
🇬🇧 English Mein (Indexation)
Indexation adjusts the purchase price of an asset for inflation using the Cost Inflation Index (CII) published by the government. It reduces taxable LTCG for debt funds (pre-April 2023 investments), property, and gold by accounting for inflation. Post-July 2024, property LTCG is 12.5% without indexation.
❓ Common Questions
Indexation kya hai simple words mein?
Indexation ek method hai jisme Cost Inflation Index (CII) use karke asset ka purchase price inflation ke hisaab se adjust kiya jaata hai. Isse taxable LTCG kam ho jaata hai.
Indexation ka ek example do?
Property bought for ₹50 lakh in 2015 (CII 254) sold in 2024 (CII 363): Indexed cost = 50L × (363/254) = ₹71.46 lakh. If sold at ₹90 lakh, taxable gain = ₹18.54 lakh instead of ₹40 lakh.
Indexation ko English mein kya kehte hain?
English mein ise Indexation kehte hain. Indexation adjusts the purchase price of an asset for inflation using the Cost Inflation Index (CII) published by the government. It reduces taxable LTCG for debt funds (pre-April 2023 investments), p