About the Indexation Benefit Calculator
What is the Indexation Benefit Calculator?
Indexation raises your purchase cost for inflation using the Cost Inflation Index (CII), which shrinks the taxable gain. The indexation benefit is largest on property held for many years.
Pick the year you bought, enter the cost and sale price, and the calculator compares 20% tax on the indexed gain with 12.5% on the plain gain, and tells you which to choose.
How to use the Indexation Benefit Calculator
- Purchase Price of Land or Building (₹) (sample: 30,00,000)
- Financial Year of Purchase (before 23 July 2024) (sample: 2010-11)
- Sale Price (₹) (sample: 90,00,000)
- Press Calculate Indexation Benefit (results also refresh as you type). The result card shows the Tax Saved with Indexation, along with Indexed cost of acquisition, Tax at 12.5% without indexation, Tax at 20% with indexation and Better option.
Formula used
Indexed cost = Purchase cost × CII (2025-26) ÷ CII (year of purchase)
- CII 2025-26 = 376 (base year 2001-02 = 100)
- Tax options = 20% × (sale − indexed cost) or 12.5% × (sale − cost), plus 4% cess
The choice is available only to resident individuals and HUFs, for land or buildings acquired before 23 July 2024.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Purchase Price of Land or Building (₹) | 30,00,000 |
| Financial Year of Purchase (before 23 July 2024) | 2010-11 |
| Sale Price (₹) | 90,00,000 |
| Result | Value |
|---|---|
| Tax Saved with Indexation | ₹3,12,934 |
| Indexed cost of acquisition | ₹67,54,491 |
| Tax at 12.5% without indexation | ₹7,80,000 |
| Tax at 20% with indexation | ₹4,67,066 |
| Better option | 20% with indexation |
| CII used | 167 → 376 (FY 2025-26) |
Tips for using the Indexation Benefit Calculator
- Indexation usually wins when prices have grown slower than inflation or the property is held very long.
- 12.5% usually wins when the property has multiplied several times in value.