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 portraying the dimension of swelling for the applicable Financial Year. These files are of high significance because of progress in the estimation of benefits which were bought in earlier years yet sold at this point. State, we acquired a house for Rs 20,00,000 and we are moving it today for 30,00,000. Along these lines, our benefit, for this situation, is Rs 10,00,000. Be that as it may, don’t you discover it somewhat wrong on the grounds that because of the exceedingly expanded rate of swelling our home which was then obtained for Rs 20,00,000 must be of higher esteem at present. 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 budgetary year in the Budget. One schedule year (for example the year 2001 as of now) being the base year. To offer impact to gratefulness in the estimation of a benefit because of swelling 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)

Filed cost is the sum so determined in the wake of contemplating 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

  • Acquisition
  • Enhancement

Cost of Acquisition is the swelled price tag and cost of the enhancement is the listed 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

Earlier to budget 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

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Learn About Surcharge Under Income Tax In India

The extra charge is an extra expense collected upon an individual or element if the pay or turnover surpasses as far as possible. It is a dynamic impose which implies it helps in taking higher duties from the wealthy who are gaining over certain money related breaking points. It is an immediate wellspring of income for the focal government and isn’t appropriated among the state treasuries.

One of the vital point to be noted here is that the extra charge is collected as a level of assessments and not of pay while charges are required on salary earned. Essentially, we can say that extra charge is a duty on assessment.

For the Financial Year 2018-19 (AY 2019-20), extra charge should be paid by the distinctive assessees under the pay impose Act 1961 as under

Individuals

For individual regardless of their age and the expense chunk, the tax charge is applicable if

The total income exceeds Rs 50 Lakhs At 10% of Income Tax
The total income exceeds Rs 1 Crore At 15% of Income Tax

 

Co-operative  Society

For a co-operative society, the surcharge will apply as

The total income is below Rs 1 Crore NIL
The total income exceeds Rs 1 Crore At 12% of Income Tax

Association/LLP

For a Partnership Firm and Limited Liability Partnership, the surcharge will apply as

The total income is below Rs 1 Crore NIL
The total income exceeds Rs 1 Crore At 12% of Income T

Indian Company

For a Indian company, the surcharge will apply as

The total income is below Rs 1 Crore NIL
The total income is above Rs 1 Crore but upto Rs 10 Cr At 7% of Income Tax
The total income exceeds Rs 10 Crore At 12% of Income Tax

Different Companies

For companies other than Domestic company, the surcharge will apply as

The total income is below Rs 1 Crore NIL
The total income is above Rs 1 Crore but upto Rs 10 Cr At 2% of Income Tax
The total income exceeds Rs 10 Crore At 5% of Income Tax

Surcharge under Income Tax

What is the contrast among Surcharge and Cess?

Additional charge and cess are both additional duties far beyond pay assess. Be that as it may, the fundamental distinction among extra charge and cess lies in their income sharing, rates, and figuring. Based on both, we can assess the said terms as

Revenue Sharing Unlike Surcharge, the revenue of Cess is shared amongst both Central and State Governments
Calculation The surcharge is calculated on income tax and cess is applicable to income tax + Surcharge
Rates The surcharge is calculated as per differential rates as explained above in case of individuals, companies and other assessees whereas Health and Education Cess is applicable at a standard rate 4% for the Financial Year 2018-19in case of all assessees.

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