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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