Indexed purchase price of the shares = 36250 x 1081 / 1024 = 38268 approximately. So Sandeep’s long-term capital gains are based on the following numbers: Full sales value – Rs. 48,000; Brokerage at 0.5% - Rs. 240; Indexed purchase price – Rs. 38,268; Indexed improvement cost – Rs. 0 So, indexed cost of acquisition would be 55,10,563 [25,00,000 * (939/426)]. In the same way, adjust additional construction cost against inflation. CII for the year in which the new floor was added is 497. So, the indexed cost for this will be 18,89,336 [10,00,000 * (939/497)]. Cost Of Acquisition: A business sales term referring to the expense required to attain a customer or a sale. In setting a marketing and sales strategy, a company must decide what the maximum cost