How to show indexation benefit in ITR calculation? Does the ITR app calculate it automatically? or do we need to do the indexation calculations manually and enter it while filing the ITR?
Indexation is automatically calcuated in Offline ITR utility as well as in majority ofthe wellbuilt income tax filing tools. But you have to enter proper date of acquisition and sale.
Below image is captured from ITR Offline Utility. Amount is random. You can clearly observe that cost of acquisition is automatically calculated. RS792500 is not entered by me.
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Hey @Jack_R
To calculate the indexation on the cost of acquisition or cost of improvement, you must enter the date of purchase, date of sale, and cost of acquisition/cost of improvement of the asset. On the basis of this data, the ITR Utility calculates the indexed cost of acquisition or the indexed cost of improvement.
If you’re filing the ITR using Quicko, you can enter the following for calculation of indexation as well as Capital Gains on sale of the Asset:
- Date of Sale
- Date of Purchase
- Cost of Acquisition/Cost of Improvement
- Sell Value
Add Income from Capital Gain on Quicko - Add Capital Gain Income : Help Center
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Hey @Quicko
What if I have mutual fund units, which are eligible for indexation benefit and my date of purchase is 4 years for some and 5 years for some ; but my date of sale is same for all units.
Will there be an option to segregate and calculate indexation benefit separately?
Hey @Gautam1199,
Yes, you can segregate the transactions and they will have to be reported trade-wise while filing the ITR.