Indexation
Indexation In simple terms indexation refers to technique to adjust income payments by means of a price index, in order to maintain the purchasing power of the public after inflation. To overcome the problem of inflation the concept of indexation was introduced. For tax purposes indexation is the term used for arriving at the current actual cost. The purchasing power of money decreases with an increase in inflation which results in an increase in prices of goods. Indexed cost allows the assess ...