Cost inflation index (CII) is used to calculate long term capital gain or losses. CII is the inflation adjusted price used to calculate the inflation-adjusted rise in the value of an asset.
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.
In 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.
Table showing Cost Inflation Index (CII) numbers since 2001-02
| Financial Year | Cost Inflation Index |
| 2022-23 | 331 |
| 2021-22 | 317 |
| 2020-21 | 301 |
| 2019-20 | 289 |
| 2018-19 | 280 |
| 2017-18 | 272 |
| 2016-17 | 264 |
| 2015-16 | 254 |
| 2014-15 | 240 |
| 2013-14 | 220 |
| 2012-13 | 200 |
| 2011-12 | 184 |
| 2010-11 | 167 |
| 2009-10 | 148 |
| 2008-09 | 137 |
| 2007-08 | 129 |
| 2006-07 | 122 |
| 2005-06 | 117 |
| 2004-05 | 113 |
| 2003-04 | 109 |
| 2002-03 | 105 |
| 2001-02 | 100 |
The Central Board of Direct Taxes (CBDT) notified the cost inflation index (CII) for the financial year 2022-23 via notification number 62 /2022/F. No. 370142/20/2022-TPL dated June 14, 2022. The Cost Inflation Index for the financial year 2022-23 relevant to Assessment Year 2023-24 is 331.
This notification shall come into force with effect from 1st day of April, 2023 and shall accordingly apply to the Assessment Year 2023-24 and subsequent years.
