Indexation refers to adjustment of the cost price of the asset based on inflation. These assets could be Mutual Funds or Stocks. The income tax department used to issue Cost Inflation Index (CII). Based on this, the asset purchase price was adjusted and overall profit was reduced; thus reduction in tax to be paid. This was abolished in 2023 and henceforth any tax needed to be paid on actual profits.
Do you think that indexation should be reintroduced since it benefits long term investors?

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