Finance

Indexation Calculator (CII)

Calculate indexed cost of acquisition and tax savings on long-term capital gains from property or gold.

1,00,00010,00,00,000
2,0012,024
1,00,00010,00,00,000
2,0012,024

Indexation Benefits:

  • Available for property and gold LTCG
  • Debt funds: No indexation from FY 2023-24
  • Uses Cost Inflation Index (CII)
  • Reduces taxable capital gains

Tax with Indexation

₹5,70,866

CII at purchase
254
CII at sale
363
Indexed cost
₹71,45,669
Indexed gain
₹28,54,331
Original gain
₹50,00,000

Original vs Indexed Gain

  • Indexed gain57.1%
  • Tax saved42.9%

What is Indexation?

Indexation adjusts your purchase price for inflation using the Cost Inflation Index (CII) published by the Income Tax department. This reduces your taxable capital gains on long-term assets like property and gold, lowering your tax liability.

Formula

Indexation Calculation:

Indexed Cost = Purchase Price × (CII at Sale / CII at Purchase)

Indexed Capital Gain = Sale Price - Indexed Cost

Tax = 20% × Indexed Capital Gain

CII Base Year: 2001-02 = 100

Note: Indexation benefit removed for debt
mutual funds from FY 2023-24.

How to use this calculator

Enter the purchase price and year, then the sale price and year. The calculator uses CII values to compute the indexed cost and resulting tax savings.

Frequently asked questions

Related calculators