Indexation Benefit

Indexation exists because taxing a purely inflationary gain taxes no real profit at all — an asset that merely kept pace with prices produced no economic gain. It has never applied to listed equity, which uses a flat concessional rate instead, and the July 2024 amendments withdrew it for most other asset classes while lowering the applicable rate, with a limited grandfathering option for property acquired earlier. Debt mutual funds lost indexation in April 2023, when their gains moved to slab-rate taxation regardless of holding period. Because the rules changed twice in two years, the treatment applicable to the specific asset and transfer date must be checked rather than assumed.