Capital Gains Indexation Calculator
Compute indexed cost of acquisition and LTCG using the CBDT-notified Cost Inflation Index. Section 111 (formerly 48) of IT Act 2025.
- Sale consideration₹30,00,000
- Original cost₹10,00,000
- Indexed cost₹25,40,541
- Transfer expenses₹50,000
- LTCG tax @ 20%₹81,892
- Cess @ 4%₹3,276
- Total tax payable₹85,168
The Cost Inflation Index (CII)
CBDT notifies the CII every financial year. Recent values:
- FY 2001-02: 100 (base year, post-rebase)
- FY 2010-11: 167
- FY 2015-16: 254
- FY 2020-21: 301
- FY 2023-24: 348
- FY 2024-25: 363
- FY 2025-26: 372 (provisional)
- FY 2026-27: 376 (provisional)
What changed in Budget 2024
From 23 July 2024, real estate LTCG can be computed at either (a) 20% with indexation OR (b) 12.5% without indexation - whichever is lower. The grandfathering provision applies for properties acquired before 23 July 2024.
FAQs
When does indexation apply?▾
Indexation applies to most long-term capital assets - debt mutual funds (acquired before April 2023), unlisted shares, real estate, gold, bonds. Exception: LTCG on listed equity / equity mutual funds under Section 112A is taxed at flat 12.5% without indexation.
What is the formula?▾
Indexed cost = (Original cost × CII of year of sale) / CII of year of acquisition. LTCG = Sale value − Indexed cost − Transfer expenses. Tax = LTCG × 20% (or 12.5% for certain assets from FY 2024-25 onwards).
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