How to compute long-term capital gain?

Long term capital gain arising on account of transfer of long-term capital asset will be computed as follows:

Particulars	Rs.
Full value of consideration (i.e., Sales consideration of asset)	XXXXX
Less: Expenditure incurred wholly and exclusively in connection with transfer of capital asset (E.g., brokerage, commission,  etc.)	(XXXXX)
Net sale consideration	XXXXX
Less: Indexed cost of acquisition (*)	(XXXXX)
Less: Indexed cost of improvement, if any (*)	(XXXXX)
Long-Term Capital Gain	XXXXX

Indexed cost of acquisition is computed with the help of following formula :

 

Cost of acquisition × Cost inflation index of the year of transfer of capital asset

                        Cost inflation index of the year of acquisition

 

Indexed cost of improvement is computed with the help of following formula :

 

Cost of improvement × Cost inflation index of the year of transfer of capital asset

                        Cost inflation index of the year of improvement