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Capital Gain - Indexation

This query is : Resolved 
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(Querist)
05 October 2010 What is the formula for calculation of Indexation?
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CMA. Dinesh S Adhikari, ACMA

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CMA. Dinesh S Adhikari, ACMA (Expert)
06 October 2010 Dear Devendra,

Formula is as follow:

CII = CII of the last year + 75%*Price inflation rate of current year.

e.g.

CII for 1982 = 100+75%*12 (becoz 12 is inflation rate for 1982-83)

CII for 1982 = 100+9 = 109

Regards!!!
Dinesh S. Adhikari
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