In order to modify a property's worth over time while taking changes in the general level of prices into consideration, the indexation of property must be calculated. You must collect precise and current information on the initial cost of the property and the current inflation rate in order to compute indexation. To calculate the indexation of property, follow the formula provided below:
Indexed cost = Actual purchase price x (Cost Inflation Index for the year of sale/Cost Inflation Index for the year of purchase)
This formula is helpful in the real estate market because it enables people to more clearly comprehend the purchasing power of their real estate investments and to make correct choices about the purchase or rental of properties.
You can check what is index copy of property. Learn about indexation property from NoBroker’s legal experts.Your Feedback Matters! How was this Answer?
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How to calculate indexation of property?
rajankbatra
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2023-07-20T11:11:53+00:00 2023-07-21T15:12:08+00:00Comment
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