how to caluclate indexation for finding out the capital gains araising out of sale of land (long term capital gain)

Admin’s Response:

The purchase price of property is divided by the indices as per cost inflation index(CII) and the increased value of CII in the year of sale is taken/multiplied with the figures of the cost.The value so calculated is the indexed cost of acquisition of property and subtracted from sale value to find out the capital gain on such sale.