Wide DirectoryListing Details
ID:31246
Title:How Indexation helps in saving capital gains tax.
URL:http://www.goodmoneying.com/tax-planning-2/how-indexation-reduces-capital-gains-tax
Category:Finance and Money: Financing
Description:The word indexation is commonly used when we talk about capital gains tax on property, gold or debt investments. In other words, indexation is the process used to calculate capital gains tax on appreciation earned by selling capital assets other than Listed equity. Common capital assets include Equity shares/mutual funds, Tradeable debentures, bonds, Debt Mutual funds, Real estate, Gold. Whatever gain or loss comes out of selling these capital assets are termed as Capital gain/loss. The role of indexation comes in when there’s long term capital gain on capital assets other than equity. Basically, indexation is a process of adjustment of cost/purchase price of capital assets with Cost Inflation index. Through Indexation government allows the investor to adjust the effect of inflation on the Capital gains made on selling of property/asset purchased.
Meta Keywords:Indexation, cost inflation index, Capital gains tax, capital gains tax Calculator.
Meta Description:Indexation, cost inflation index, Capital gains tax, capital gains tax Calculator.
Link Owner:GOOD MONEYING