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of <h1>Understanding 'Indexed Cost of Improvement' Under Section 48 of the Income Tax Act 1961 for Capital Gains Tax</h1> The 'Indexed Cost of any Improvement' under section 48 of the Income Tax Act 1961 refers to an amount calculated by comparing the Cost Inflation Index of the year the asset is transferred to the Cost Inflation Index of the year the improvement occurred. This calculation helps adjust the cost of improvement for inflation when determining capital gains tax liability.
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