Indexation
Raising the cost of an asset by inflation before working out the capital gain, so only the real gain is taxed.
The cost is multiplied by the Cost Inflation Index of the year of sale ÷ that of the year of purchase. Since 23 July 2024 indexation is gone for most assets, replaced by a lower 12.5% rate.
For property bought before 23 July 2024, resident individuals can still pay 20% with indexation if that's less than 12.5% without.
Capital Gains Tax Calculator
Short or long term, and the tax on selling shares, mutual funds, property or gold, under the 2026-27 rules.
Related terms
Rules as of tax year 2026-27. Written by the Welthr team; last reviewed on . Not financial advice.