Advanced Capital Gains Indexation Calculator

Compute inflation-adjusted capital gains tax, ETF/ELSS returns, business ROI, and forex hedging costs with real-time data. Updated with Union Budget 2025 CII rates[citation:1][citation:7].

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Capital Gains Indexation Calculator

Adjust your asset purchase price for inflation using the official Cost Inflation Index (CII) to lower taxable gains[citation:1].

Indexation Formula[citation:1]:
Indexed Cost = (Purchase Price × CIISale Year) ÷ CIIPurchase Year
LTCG = Sale Price - Indexed Cost - Expenses
Sample: (20,00,000 × 331) ÷ 167 = ₹39,64,071

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Capital Gains Indexation: Professional Tax Optimization

Indexation is a legal method to adjust the purchase price of long-term capital assets for inflation, reducing your taxable gain[citation:1]. This calculator uses the official Cost Inflation Index (CII) published by the Government of India.

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Latest CII Values (2025-26 Update)

The Union Budget 2025 updated CII values[citation:7]. Indexation benefits now apply primarily to immovable property under specific conditions[citation:7].

FAQ: Capital Gains Indexation

Q: What is the indexation formula?[citation:1]
A: Indexed Cost = (Purchase Price × CIISale Year) ÷ CIIPurchase Year. Then LTCG = Sale Price - Indexed Cost - Expenses.
Q: Which assets qualify for indexation?[citation:1]
A: Long-term assets held >24 months: real estate, debt mutual funds (before rule changes), bonds, unlisted shares. Equity assets use flat rates.
Q: How does indexation reduce tax?[citation:1]
A: By inflating your purchase cost with inflation factors (CII), reducing net taxable gain, potentially lowering tax from 20% to effective lower rates.
Q: Can NRIs use indexation?[citation:1]
A: Yes, NRIs selling property or specified assets in India can use indexation to compute capital gains tax.
Q: What are the latest CII values?[citation:7]
A: 2024-25: 348, 2023-24: 345, 2022-23: 331, 2021-22: 317, 2020-21: 301. Updated annually in the Union Budget.