What is Indexation in Income Tax?

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Indexation is a process to calculate the adjusted price of an asset using a price index which takes into account inflation over a period the asset was held.

In India, the Indexation Income Tax benefits are available on capital gains in Debt mutual funds when you hold them for at least 3 years. The Indexation offers better post-tax returns by reducing the tax liability.

Topic: Indexation (Income Tax) Defenition

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Is indexation income tax benefit available to NRIs on their investments?
Is indexation income tax benefit available on all instruments?
Why is indexation done in income tax?
How is indexation calculated in income tax?
What is Cost of Inflation Index (CII)?
Who notifies the Cost of Inflation Index (CII)?

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