Why is indexation done in income tax?

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Indexation is done to consider the effect of inflation which impacts the purchasing power, price of goods and services, and rupee value. Indexation helps compare and justify the original price (when it was bought) of an asset with the current price in line with inflation.

Topic: Indexation (Income Tax) Defenition

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What is Indexation in Income Tax?
Is indexation income tax benefit available to NRIs on their investments?
Is indexation income tax benefit available on all instruments?
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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