Inflation is a significant factor contributing to the increase in the value of a capital asset over time. Income tax laws allow you to adjust the sale price of a capital asset for inflation, so you pay tax on the real gains rather than the inflationary gains. Indexation is a method used to adjust the cost of a capital asset to reflect the effects of inflation since it was purchased.
How to use your tax-free foreign remittance limit of Rs 10 lakh wisely in FY26?
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