Detailed Understanding Of Cost Inflation Index (CII)

CII or Cost Inflation Index alludes to the numbers issued by the Income Tax Department in every year’s spending delineating the dimension of swelling for the significant Financial Year. These lists are of high significance because of progress in the estimation of benefits which were acquired in earlier years yet sold at this point. State, we bought a house for Rs 20,00,000 and we are moving it today for 30,00,000. Thus, our benefit, for this situation, is Rs 10,00,000. Yet, don’t you discover it somewhat unseemly on the grounds that because of the exceedingly expanded rate of swelling our home which was then acquired for Rs 20,00,000 must be of higher esteem as of now. What is this higher esteem?? I would state it is Rs 22,00,000 you may express it to be 25,00,000 and someone may cite some other esteem. To understand out these ambiguities Income Tax division turned out with the Cost Inflation Index. CII is issued for each monetary year in the Budget. One timetable year (for example the year 2001 right now) being the base year. To offer impact to gratefulness in the estimation of a benefit because of expansion following computation should be done Calculation of Indexed Cost

Particulars Amount
Value of Asset* for the year of purchase x CII for year of sale   _______________________________________________________________  CII for year of purchase** xxx
*(if the asset was purchased before base year i.e. 2001 take Fair Market Value as on the year 2001)
**(if the asset was purchased before base year i.e. 2001 take CII for the year 2001-02)

Ordered expense is the sum so determined in the wake of mulling over the impact of Cost Inflation Index on the estimation of a benefit as done above. Filed cost can be determined with the end goal of capital gains on the clearance of property under the Income Tax Act for

Obtaining and Enhancement

Cost of Acquisition is the expanded price tag and cost of the enhancement is the filed expense of costs acquired on such property like development and so on. The legislature has issued Cost Inflation Index for the Financial Year 2018-19 at 280 vide its Notification dt 5/06/2017. The Current Cost Inflation Index Table-

Cost Inflation Index Chart
S No Assessment Year Financial Year Cost Inflation Index
1 2019-20 2018-19 280
2 2018-19 2017-18 272
3 2017-18 2016-17 264
4 2016-17 2015-16 254
5 2015-16 2014-15 240
6 2014-15 2013-14 220
7 2013-14 2012-13 200
8 2012-13 2011-12 184
9 2011-12 2010-11 167
10 2010-11 2009-10 148
11 2009-10 2008-09 137
12 2008-09 2007-08 129
13 2007-08 2006-07 122
14 2006-07 2005-06 117
15 2005-06 2004-05 113
16 2004-05 2003-04 109
17 2003-04 2002-03 105
18 2002-03 2001-02 & before 2001 100

Past to spending plan 2017 the year 1981 was taken as the base year and the Cost Inflation Index as recommended by the Income Tax Department were

S.No Assessment Year Financial Year Cost Inflation Index
1 1982-83 1981-82 & Before 1981 100
2 1983-84 1982-83 109
3 1984-85 1983-84 116
4 1985-86 1984-85 125
5 1986-87 1985-86 133
6 1987-88 1986-87 140
7 1988-89 1987-88 150
8 1989-90 1988-89 161
9 1990-91 1989-90 172
10 1991-92 1990-91 182
11 1992-93 1991-92 199
12 1993-94 1992-93 223
13 1994-95 1993-94 244
14 1995-96 1994-95 259
15 1996-97 1995-96 281
16 1997-98 1996-97 305
17 1998-99 1997-98 331
18 1999-00 1998-99 351
19 2000-01 1999-00 389
20 2001-02 2000-01 406
21 2002-03 2001-02 426
22 2003-04 2002-03 447
23 2004-05 2003-04 463
24 2005-06 2004-05 480
25 2006-07 2005-06 497
26 2007-08 2006-07 519
27 2008-09 2007-08 551
28 2009-10 2008-09 582
29 2010-11 2009-10 632
30 2011-12 2010-11 711
31 2012-13 2011-12 785
32 2013-14 2012-13 852
33 2014-15 2013-14 939
34 2015-16 2014-15 1024
35 2016-17 2015-16 1081
36 2017-18 2016-17 1125
Certicom - A Group of Chartered Accountants - Articles
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Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.

Certicom Consulting

Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.