It is used to do all the Indexation calculations for the Capital Gains coming from gains received/accrued from various capital assets. So the CII number helps to calculate the Inflation-adjusted Purchasing Price of an Asset. This is what is known as the Indexed Cost of Acquisition). Historical...
For Long term Capital Gains for debt mutual fund units, the tax rate are: Either 10% without Indexation OR 20% with Indexation. Holding period is more than 12 months. For long-term gains on property, gold etc the tax rate is 20% with indexation of cost. Long term capital gains from ...