CII-based indexationSection 111 (formerly §48)

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.

Long-term capital gain (indexed)
₹4,09,459
Indexed cost: ₹25,40,541 (CII 148 → 376)
  • 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
Indexation is the default for most LTCG. Listed equity / equity MFs are exceptions - they use Section 112A at 12.5% without indexation.

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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