<s>[INST] Is the benefit of indexation available while computing capital gain arising on transfer of short-term capital asset? [/INST] ​​​​Indexation is a process by which the cost of acquisition/improvement of a capital asset is adjusted against inflationary rise in the value of asset. The benefit of indexation is available only in case of long-term capital assets and is not available in case of short-term capital assets.​​ </s>