Cost Inflation Index
Cost Inflation Index
According to provision of Income Tax Act 1961 any assessee need to calculate long term capital gain under section 48 need to calculate cost Inflation Index.
Full value consideration
Full value consideration The consideration received or to be received by the seller as a result of transfer of his capital assets. Capital gains are chargeable to tax in the year of transfer, even if no consideration has been received.
Cost of acquisition
Cost of acquisition The value for which the capital asset was acquired by the seller.
Cost of improvement
Cost of improvement Expenses of a capital nature incurred in making any additions or alterations to the capital asset by the seller. Note that improvements made before April 1, 2001, is never taken into consideration.
COST INFLATION INDEX
On or After 01-04-2017
Cost Inflation Index revise the base year for computation of capital gains was amended vide Finance Act,2017
Cost Inflation index (CII ) is used for computation of long term capital gain. It is notified by Central Board of Direct Taxes every year.
Cost Inflation Index is applicable from financial year 1981-82
| S.No. | Financial Year | Cost Inflation Index |
| 1. | 1981-82 | 100 |
| 2. | 1982-83 | 109 |
| 3. | 1983-84 | 116 |
| 4. | 1984-85 | 125 |
| 5. | 1985-86 | 133 |
| 6. | 1986-87 | 140 |
| 7. | 1987-88 | 150 |
| 8. | 1988-89 | 161 |
| 9. | 1989-90 | 172 |
| 10 | 1990-91 | 182 |
| 11. | 1991-92 | 199 |
| 12. | 1992-93 | 223 |
| 13. | 1993-94 | 244 |
| 14. | 1994-95 | 259 |
| 15. | 1995-96 | 281 |
| 16. | 1996-97 | 305 |
| 17. | 1997-98 | 331 |
| 18. | 1998-99 | 351 |
| 19. | 1999-2000 | 389 |
| 20. | 2000-01 | 406 |
| 21.. | 2001-02 | 426 |
| 22. | 2002-03 | 447 |
| 23. | 2003-04 | 463 |
| 24. | 2004-05 | 480 |
| 25. | 2005-06 | 497 |
| 26. | 2006-07 | 519 |
| 27. | 2007-08 | 551 |
| 28. | 2008-09 | 582 |
| 29. | 2009-10 | 632 |
| 30. | 2010-11 | 711 |
| 31. | 2011-12 | 785 |
| 32. | 2012-13 | 852 |
| 33. | 2013-14 | 939 |
| 34. | 2014-15 | 1024 |
| 35. | 2015-16 | 1081 |
| 36. | 2016-17 | 1125 |
| S.No. | Financial Year | Cost Inflation Index |
| 1. | 2001-2002 | 100 |
| 2. | 2002-2003 | 105 |
| 3. | 2003-2004 | 109 |
| 4. | 2004-2005 | 113 |
| 5. | 2005-2006 | 117 |
| 6. | 2006-2007 | 122 |
| 7. | 2007-2008 | 129 |
| 8 | 2008-2009 | 137 |
| 9 | 2009-2010 | 148 |
| 10. | 2010-2011 | 167 |
| 11. | 2011-2012 | 184 |
| 12. | 2012-2013 | 200 |
| 13. | 2013-2014 | 220 |
| 14. | 2014-2015 | 240 |
| 15. | 2015-2016 | 254 |
| 16. | 2016-2017 | 264 |
| 17. | 2017-2018 | 272 |
| 18. | 2018-2019 | 280 |
| 19. | 2019-2020 | 289 |
Therefore cost inflation index is important to calculate actual long term capital gain under Income Tax Act 1961
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