Yes you can very well deduct the the Indexed Cost of Acquisition from the Sale Proceeds, you can also deduct the Cost of Improvement, Registration Charges, Brokerage charges in order to save up on taxes.
The sale proceeds can also be gifted to your daughter before paying the taxes and your daughter can herself pay the taxes but the tax shall have to be paid in your name. So either you or your daughter can make the payment but the payment will have to be made in your name only.
Trust this clarifies your query.
Please feel free to call/ get back in case of any further clarifications.
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP