Indexation Calculator

Indexed cost = original cost × CII of year of sale ÷ CII of year of purchase. Take a flat bought in FY 2010-11 for Rs 30 lakh, sold in FY 2025-26. CII for 2010-11 is 167 and for 2025-26 is 376. Indexed cost = 30,00,000 × 376 / 167 = Rs 67,54,491. So if you sold for Rs 90 lakh, your indexed long-term capital gain is roughly Rs 22.45 lakh, taxed at 20% with indexation under the legacy option (available only for assets bought before 23 July 2024 by resident individuals/HUF). Stamp duty and registration paid at purchase are added to original cost before indexing.

For any capital asset acquired before 1 April 2001, you have a choice: use actual cost or the fair market value as on 1 April 2001, whichever is higher, as your starting point. Then apply CII of FY 2001-02, which is the base year with index 100, against CII of the year of sale. Get a registered valuer's certificate for the 1 April 2001 FMV; circle rate or stamp duty value of that period works as supporting evidence. This rule, introduced from FY 2017-18, replaced the older 1 April 1981 base and gave taxpayers a much more current valuation reference.

Yes, conditionally. Resident individuals and HUFs who acquired land or buildings before 23 July 2024 can still choose between the legacy 20% with indexation route and the new 12.5% without indexation route, computing both and paying the lower tax. Property acquired on or after 23 July 2024 is taxed only at 12.5% without indexation, no choice. Companies, firms and non-residents lost the indexation option entirely, even for older properties, with effect from 23 July 2024. The dual-option window is a transition relief that I expect taxpayers to use heavily, especially on properties held for 15-20 years where indexation produces a much larger cost base.

Each capital improvement is indexed separately using the CII of the financial year in which the improvement was incurred, against the CII of the year of sale. So if you bought a flat in FY 2008-09 (CII 137) for Rs 25 lakh, added a floor in FY 2015-16 (CII 254) for Rs 10 lakh, and sold in FY 2025-26 (CII 376): indexed cost of purchase = 25,00,000 × 376/137 = Rs 68.61 lakh; indexed improvement = 10,00,000 × 376/254 = Rs 14.80 lakh. Total indexed cost = Rs 83.41 lakh. Only capital improvements qualify, not regular repair, painting or annual maintenance.

The Cost Inflation Index notified by CBDT for FY 2025-26 is 376. For the previous year FY 2024-25 it was 363, and the base year FY 2001-02 carries the index value of 100, against which all post-2001 figures are scaled. CII is notified annually, usually by June, in the Official Gazette. You'll need it for any long-term capital gain computation where you're choosing the 20% with indexation route. Quick reference points I keep handy: FY 2017-18 = 272, FY 2020-21 = 301, FY 2022-23 = 331. Always confirm the current year number from the latest CBDT notification before finalising your computation.

For physical gold and gold ETFs held over 24 months and acquired before 23 July 2024, indexation continues at the resident individual/HUF level, with a choice between 20% indexed and 12.5% non-indexed. Acquisitions on or after 23 July 2024 lose indexation. For debt mutual funds bought on or after 1 April 2023, gains are always taxed at slab rates regardless of holding period, with no indexation, no LTCG concession. Debt funds bought before 1 April 2023 retain the legacy 24-month long-term route, and resident individuals/HUFs may use indexation if the asset was acquired before 23 July 2024. The rules layer onto each other; check both dates carefully.

When you inherit property, your cost of acquisition is the original cost paid by the previous owner (the person you inherited from), not the value on the date of inheritance. The holding period also includes the previous owner's holding period, so a property inherited recently but held by your father for 25 years is long-term in your hands. For indexation, two views exist: the strict legal view uses CII of the year the previous owner acquired it, but many tribunals and high courts have held that CII of the year of inheritance can be used. The more taxpayer-friendly position has prevailed in most rulings, but document everything carefully.