InvestorQ : Is it true that indexation is not available to equity assets? Is that not unfair?
Abhisha Yadav made post

Is it true that indexation is not available to equity assets? Is that not unfair?

Answer
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Niraj Mehta answered.
1 year ago


While the benefit of indexation is available for all long term capital gains, the exception is equities and equity funds. Till the fiscal year 2017-18, long term capital gains on equities were tax free in the hands of the investors. However, effective fiscal year 2018-19 all long term capital gains on equities will be taxed at 10% above a profit threshold of Rs.1 lakh per annum. This is the blanket limit of exemption available for equity, equity funds etc. However, this will be a flat tax and the benefit of indexation will not be allowable in this case.