Question 1

What Does the Capital Gains Indexation Calculator Do?

Accepted Answer

It helps calculate the indexed cost of acquisition and improvement using the official cost inflation index (CII), lowering taxable gains on long-term assets.

Question 2

Which Assets Qualify for Indexation?

Accepted Answer

Indexation is applicable to long-term assets such as real estate, debt mutual funds, bonds, unlisted shares, etc. (equity and STT-paid assets typically use flat rates).

Question 3

How Does Indexation Reduce Capital Gains Tax?

Accepted Answer

Indexation reduces capital gains tax by inflating your purchase cost with inflation factors (CII), reducing the net gain by increasing the basis of computation.

Question 4

Is the Calculator Updated with the Recent Tax Changes?

Accepted Answer

Yes, we ensure to keep the tool updated, and it will reflect the latest data under Union Budget 2025 and FY 2025-2026 rates.

Question 5

How is Long-term vs Short-term Classification Determined?

Accepted Answer

The calculator uses thresholds to determine between long-term vs short-term:

Less than 24 months (all assets) will be classified as long-term.
Holding period is input through purchase and sale dates.

Question 6

Can NRIs Use the Indexation Calculator?

Accepted Answer

Yes, NRIs selling property or specified assets in India can use the calculator to compare gains with and without indexation.

Question 7

Does the Calculator Estimate the Tax Liability, Too?

Accepted Answer

Our tool shows the indexed cost and net capital gain. However, you may have to compute the tax separately depending on the rates. (e.g, 12.5% or 20%) based on the regime and asset.

Capital Gain Indexation Calculator

Frequently Asked Questions