New CII Index Base Year 2001-02 Notified by CBDT for FY 2017-18 onwards – Download print Notification

By | August 21, 2018
(Last Updated On: August 21, 2018)

CII Index / Cost Inflation Index

Base Year 2001-02

This notification of CII Index shall come into force with effect from 1st day of April, 2018 and shall accordingly apply to the assessment year 2018-19 and subsequent years.

[ Read CII Index of  earlier years i.e from 1981 to 2017 – CII (COST INFLATION INDEX) INCOME TAX- 1981 to 2017 ]

CBDT has vide Notification No. 44/2017 notified Cost Inflation indexes with Base Year as 2001-02 for the Financial Year 2001-02 to 2017-18 and same are applicable from Financial Year 2017-18 onwards

Vide Notification No.26/2018/F.No.370142/3/2018-TPL  Dated 13.06.2018 CBDT has amended above Notification and notified the CII Index for FY 2018-19

MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TEXES)

NOTIFICATION NO. 44/2017

New Delhi, the 5th June, 2017

INCOME-TAX

S.O. 1790(E).—In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the Cost Inflation Index as mentioned in column (3) of the Table for the Financial Years mentioned in the corresponding entry in column (2) of the said Table, namely:—

 

TABLE
SI. No.Financial YearCost Inflation Index
(1)(2)(3)
12001-02100
22002-03105
32003-04109
42004-05113
52005-06117
62006-07122
72007-08129
82008-09137
92009-10148
102010-11167
112011-12184
122012-13200
132013-14220
142014-15240
152015-16254
162016-17264
172017-18272
*182018-19280

 

2. This notification shall come into force with effect from 1st day of April, 2018 and shall accordingly apply to the assessment year 2018-19 and subsequent years.

[Notification No. 44/2017/F.No.370142/11/2017-TPL]

ABHISHEK GAUTAM,

Under Secy. (Tax Policy & Legislation)


* inserted by Notification No.26/2018/F.No.370142/3/2018-TPL  Dated 13.06.2018 w.e.f 01.04.2019 and shall accordingly apply to the Assessment Year 2019-20 and subsequent years.

Download CII Index / Cost Inflation Index Base Year 2001-02 in PDF

How Long term Capital Gains is calculated in the case of Long term Capital Assets  using Cost Inflation Index ?

Long term capital gain arising on account of transfer of long-term capital asset will be computed as follows:

ParticularsRs.
Full value of consideration (i.e., Sales consideration of asset)XXXXX
Less: Expenditure incurred wholly and exclusively in connection with transfer of capital asset (E.g., brokerage, commission,  etc.)(XXXXX)
Net sale considerationXXXXX
Less: Indexed cost of acquisition (*)(XXXXX)
Less: Indexed cost of improvement, if any (*)(XXXXX)
Long-Term Capital GainXXXXX

(*) Cost of acquisition is the purchase price of the capital asset and cost of improvement which includes all expenditure of a capital nature incurred  in making any additions or alterations to the capital asset by the assesse after it became his property. Indexation is a process by which the cost of acquisition/improvement is adjusted against inflationary rise in the value of asset. For this purpose, Central Government has notified cost inflation index for different years. The benefit of indexation is available only to long-term capital assets. For computation of indexed cost of acquisition/indexed cost of improvement, following factors are to be considered:

  • Year of acquisition/improvement
  • Year of transfer
  • Cost inflation index of the year of acquisition/improvement
  • Cost inflation index of the year of transfer

How  Indexed cost of acquisition is computed ?

Indexed cost of acquisition is computed with the help of following formula :

Cost of acquisition × Cost inflation index of the year of transfer of capital asset

Cost inflation index of the year of acquisition

How Indexed cost of improvement is computed ?

Indexed cost of improvement is computed with the help of following formula :

Cost of improvement × Cost inflation index of the year of transfer of capital asset

Cost inflation index of the year of improvement

Give example to calcuate  Long term Capital Gain using Cost of Inflation Index ?

lustration

Mr. Raja is a salaried employee. On 2nd May, 2000 he purchased a residential house consisting two floors for Rs. 8,40,000. In May, 2005 he constructed third floor at a cost of Rs. 1,00,000. The house is sold on 1st June, 2017. What will be the indexed cost of acquisition and indexed cost of improvement?

**

On the basis of formula discussed above, indexed cost of acquisition will be computed as follows :

Rs. 8,40,000 × 272  (*) = Rs. 22,84,800/-

100 (*)

(*) Cost inflation index as notified by the Government for financial year 2016-17 is 272 and for financial year 2001-02 is 100.

On the basis of formula discussed above, indexed cost of improvement will be computed as  follows :

Rs. 1,00,000 × 272  (*) = Rs. 2,32,478/-

117 (*)

(*) Cost inflation index as notified by the Government for financial year 2016-17 is 272 and for financial year 2005-06 is 117. ​

Related Book of Income tax

CII Index / Cost Inflation Index

CII Index for FY 2018-19,CII Index for FY 2017-18,CII Index for FY 2016-17,CII Index for FY 2015-16,CII Index for FY 2014-15,CII Index for FY 2013-14,CII Index for FY 2012-13,CII Index for FY 2011-12,CII Index for FY 2010-11,CII Index for FY 2009-10,CII Index for FY 2008-09,CII Index for FY 2007-08,CII Index for FY 2006-07,CII Index for FY 2005-06,CII Index for FY 2004-05,CII Index for FY 2003-04, CII Index for FY 2002-03, CII Index for FY 2001-02,

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