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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