Cost Inflation Index (CII) for Tax Purpose

Tax on capital gains is computed by deducting the indexed cost of acquisition (purchase) from the full value of consideration. The cost of purchase of an asset is to be increased by applying the cost inflation index (CII).

Once the cost inflation index is applied to the cost of acquisition, it becomes indexed cost of acquisition for the purpose of calculating capital gain. In computing capital gains arising from the transfer of a long term capital asset, deduction can be claimed for the cost of acquisition and the cost of Improvement after indexing them.

Cost Inflation Index (CII) for the purpose of Income tax and other useIn tax for computation of long-term capital gain, cost of acquisition and cost of improvement are indexed on the basis of following cost inflation index notified by the Central Government for this purpose.

Sl.No. Financial Year Cost Inflation Index Sl.No. Financial Year Cost Inflation Index
1. 1981-82 100 16. 1996-97 305
2. 1982-83 109 17. 1997-98 331
3. 1983-84 116 18. 1998-99 351
4. 1984-85 125 19. 1999-00 389
5. 1985-86 133 20. 2000-01 406
6. 1986-87 140 21. 2001-02 426
7. 1987-88 150 22. 2002-03 447
8. 1988-89 161 23. 2003-04 463
9. 1989-90 172 24. 2004-05 480
10. 1990-91 182 25. 2005-06 497
11. 1991-92 199 26. 2006-07 519
12. 1992-93 223 27. 2007-08 551
13. 1993-94 244 28. 2008-09 582
14. 1994-95 259 29. 2009-10 632
15. 1995-96 281 30. 2010-11 711
31. 2011-12 785 32. 2012-13 852

 

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