Zerodha (Flat Rs 20 Per Trade)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

How is indexation calculated in income tax?

Indexation is calculated using an index price called the Cost of Inflation Index (CII).

Mathematical Formula to calculate indexed price = Original Price of asset * (CII of Year of Sale/CII of Year of Purchase)