We are only conducting Seminars to make Professional Traders. Join Now for Hyderabad and Chennai Seminar. The material published on the blog is of general and educational information only and is not suitable for trading purpose.

How Indexation Can Save Your Income Tax?

If one knows the income tax procedure then one can reduce the tax liability to reduce the income tax. Here comes into play a concept called as indexation which can help you save considerable amount of tax.

Indexation is the process of calculating long-term capital gains for tax purposes after adjusting the purchase price for inflation.

The adjustment is done using the cost of inflation index issued by the Central Board for Direct taxes for each financial year. Indexation ensures that the increase in the value of the investment that can be attributed to inflation is not taxed and only the real return is taxed.

However if you do not know how to go about calculating the indexation then it is better to go for filing of income tax through a qualified tax return preparer who ill get you maximum income tax deductions.

Bookmark us for income tax tips to save tax in a legal way or subscribe us for free updates in email.

Most Visited Stocks - Click to Visit Link

 
We Teach and Train our Readers as we want to make sure that Readers become thorough professionals. We do not provide any stock tips. Please do not make any payments. Your joining or reading content is subject to acceptance of our terms and Disclaimer for which link is given on the site at bottom right hand corner. Wherever the word tip is written; it implies an idea which is of informational value and is not suitable for trading. Trade ideas if any are for educational purpose only. We are conducting Seminars to make Professional Traders. Join Now for Bangalore, Chennai and Hyderabad. Leave query through contact form.
Chart> Nifty A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 0-9