COST INFLATION INDEX

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Cost Inflation Index or CII is to measure inflation that is used for computing long-term capital gains on sale of capital assets. The CII has been notified by the Central Government every year commencing from the financial year 1981-82 keeping in view the Consumer Price Index, which in turn helps an individual tax payer to understand the actual long term capital gain or loss on selling of capital assets by factoring the impact of inflation on cost.

To calculate the Long Term Capital Gain from sale of capital assets, the following formula may be used

Profit from (Cost of Assets Sold * CII (year of sale) – Cost of Asset Purchased * CII (year of Purchase)

The following table contain cost inflation index up to F.Y. 2015-16.

Financial Year Cost Inflation Index
1981-82 100
1982-83 109
1983-84 116
1984-85 125
1985-86 133
1986-87 140
1987-88 150
1988-89 161
1989-90 172
1990-91 182
1991-92 199
1992-93 223
1993-94 244
1994-95 259
1995-96 281
1996-97 305
1997-98 331
1998-99 351
1999-00 389
2000-01 406
2001-02 426
2002-03 447
2003-04 463
2004-05 480
2005-06 497
2006-07 519
2007-08 551
2008-09 582
2009-10 632
2010-11 711
2011-12 785
2012-13 852
2013-14 939
2014-15 1024
2015-16 1081

 

 

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