Capital Gain Computation
Building an accurate, defensible working of your capital gains — cost, indexation, deductions and the final taxable figure.
Capital gain computation starts with sale consideration, deducts the cost of acquisition and improvement (indexed where the asset qualifies as long-term), and reduces this by any expenses incurred wholly for the transfer. The result, after applying eligible exemptions, is the taxable capital gain reported in the return. Small differences in how cost or indexation is applied can materially change the final tax outcome, so the working needs to be built asset-by-asset.
What goes into an accurate computation
A defensible computation rests on correctly sourced cost figures and the right indexation and deduction treatment.
- Establishing the correct cost of acquisition, including inherited or gifted assets
- Applying the Cost Inflation Index for eligible long-term assets
- Adding eligible cost of improvement with supporting documentation
- Deducting expenses incurred wholly and exclusively for the transfer
- Applying grandfathering provisions where applicable (e.g., pre-2018 equity)
- Cross-checking the final figure against schedule CG in the return
What this service includes
How we build your capital gains working.
Cost Basis Determination
Establishing acquisition cost correctly, including for inherited, gifted or bonus-issued assets.
Indexation Application
Applying the Cost Inflation Index accurately for eligible long-term assets.
Deductible Expense Review
Identifying transfer-related costs that can be deducted from sale consideration.
Final Working & Schedule CG
Preparing a clean, audit-ready computation that maps directly into the return.
Our process
From initial consultation to completion.
Cost & Date Verification
Confirming acquisition cost, date, and mode of acquisition (purchase, gift, inheritance).
Indexation & Adjustments
Applying CII and any grandfathering rules that affect the base cost.
Expense & Deduction Mapping
Adding eligible improvement costs and transfer expenses to the working.
Final Computation
Arriving at the taxable gain and preparing schedule CG for filing.
Why the computation deserves care
What sets our approach apart.
Indexation errors directly inflate tax
Using the wrong CII year or missing indexation altogether can significantly overstate your tax liability.
Inherited and gifted assets need special treatment
Cost and holding period often carry over from the previous owner — a detail that's easy to miss.
A clean working supports scrutiny response
A well-documented computation is your first line of defence if the return is questioned later.
capital gain computation questions answered
What people ask before engaging us.
Need a defensible capital gains working?
Let our team help you navigate this process with clarity and confidence.
