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Cost Inflation Index (CII) 2018-19 and Previous Years

Cost Inflation Index (CII) Applicable from Financial Year 2017-18

Financial YearCost Inflation Index (CII)2019-202892018-192802017-182722016-172642015-162542014-152402013-142202012-132002011-121842010-111672009-101482008-091372007-081292006-071222005-061172004-051132003-041092002-031052001-02100Anytime before 1st April 2001100

Source: Income Tax Website

Cost Inflation Index (CII) Applicable for Financial year 2016-17 and preceding years

Financial YearCost Inflation Index (CII)2016-1711252015-1610812014-1510242013-149392012-138522011-127852010-117112009-106322008-095822007-085512006-075192005-064972004-054802003-044632002-034472001-024262000-014061999-003891998-993511997-983311996-973051995-962811994-952591993-942441992-932231991-921991990-911821989-901721988-891611987-881501986-871401985-861331984-851251983-841161982-831091981-82100Anytime before 1st April 1981100

What is Cost Inflation Index (CII)?

Cost inflation index is the index for the inflation rate in the country. Central Board of Direct Taxes (CBDT) issues this index every year.

What is use of CII?

CII is used while calculating long-term capital gains. CII for the year in which you have purchased the asset and the year in which asset is sold are considered while calculating capital gains. The cost after indexing is deducted from the sale price for calculation of capital gain. So the capital gain tax gets reduced.

However, the benefit of cost indexing is available only in case of long-term capital gain. If the asset is purchased before 1st April 1981 then the cost inflation index for the year 1981-82, i.e., “100” should be taken as CII for that year. If you have made improvement of the asset, then you need to adjust the cost inflation index with the multiplying with the CII of the year the improvement was made.

Cost after Indexing = Cost before indexing * CII for sale year/CII for purchasing year

Capital Gain = Sale price – Cost after indexing

Read more on How to Calculate Long-Term Capital Gain

In Budget 2017, the base year for CII has been shifted from Financial year 1981-82 to 2001-02. New CII is applicable for Assessment year 2018-19 and subsequent years. Therefore for Financial year 2016-17 the old CII will be used.

Source: Income Tax Website

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