2.41.7 Apply Indexation

This topic provides the systematic instructions to Apply Indexation record.

When you have specified the indexation values for a period, you must also configure the system to apply indexation for the computation of capital gains tax for an investor, by taking the following steps:

1. You must indicate the application of indexation for capital gains tax, in the unit holder’s account profile.
2. Set up a load for the application of capital gains tax, in the Load Maintenance.
3. You must associate this load with the appropriate fund, in the Fund Load Setup, in the fund rules.
   You must set up the following attributes for this association:

   • The applicability of indexation for the load
   • The slab basis (gross or net amount)
   • The basis of application (as ‘capital gains indexation’)
   • The frequency of application (as ‘post allocation’)

   For more information on how the indexation value is applied in the computation of capital gains tax, refer topic The Allocation Process of FCIS system.