Indexation benefit: Indexation is a process by which

Indexation is a process by which the cost of acquisition of an asset can be indexed. Know its meaning, calculation, benefit in mutual funds. Removal of indexation benefit on sale of property: Why 2001 is a critical year when selling your house Previously, individuals in India could leverage what is known as the ' indexation benefit ' to minimize the tax on the profit earned from selling a property. This benefit allowed the variance between the purchase and sale price of a property (i.e., the profit) to be adjusted by the prevailing inflation rate during the period when the property was owned. Therefore, it acted as a tool to ... Summary: Finance Bill, 2024 introduced key amendments to Section 112 of the Income Tax Act, reducing the long-term capital gains tax rate from 20% to 12.5% while withdrawing the indexation benefit for transfers after July 23, 2024. Discover how indexation helps reduce tax liability on long-term investments by adjusting inflation. Learn about its benefits and recent changes in Budget 2024.