Cost Inflation Index (CII) for PY 2019-20/ AY 2020-21 Notified by CBDT at 289 (Base Year 2001-02)

In the case of transfer of short term capital asset, the amount of capital gains can be arrived at by deducting the cost of acquisition/ improvement from the sale consideration. However, in the case of transfer of long term capital asset, capital gains are determined by deducting indexed cost of acquisition/ improvement from the sale consideration.

It may be noted that Budget 2017/ Finance Act 2017 has proposed amendments in provisions relating to indexation for the purpose of determining long term capital gains. Base year has been shifted from FY 1981-82 to FY 2001-02. In respect of assets acquired prior to 1 Apr. 2001, the assessee now has the option to use FMV/ Indexed Cost of Acquisition for arriving at the figure of long term capital gains. It’s likely that investors in property will stand to gain in most of the cases with shifting of the base year for the purpose of indexation.

Cost Inflation Index basically means the index notified by the Central Govt. with reference to average rise in the consumer price index, during the year immediately preceding the relevant previous year. However, indexed cost of acquisition is arrived at by multiplying the cost of acquisition with the change in cost inflation index since the year of acquisition or 1 April, 2001 whichever is later.

SI. No. Financial Year Cost Inflation Index
1 2001-02 100
2 2002-03 105
3 2003-04 109
4 2004-05 113
5 2005-06 117
6 2006-07 122
7 2007-08 129
8 2008-09 137
9 2009-10 148
10 2010-11 167
11 2011-12 184
12 2012-13 200
13 2013-14 220
14 2014-15 240
15 2015-16 254
16 2016-17 264
17 2017-18 272
18 2018-19 280
19 2019-20 289

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  1. J . J. Saraf says:

    Few mts back I had sent you quarry regarding capital gain on account of sale of house property situated at Aashiyana colony Lucknow. ,measuring 259.95 Sq. Mtrs.
    Circle rate at Aashiyana,Lucknow is 24000 per sq. metreThis property was was purchased in1995 at the cost of 174000. from LDA Lucknow and sold on 3 Dec.2020 at the cost of 96 Lakh.
    Now if I don’t purchase property, then how much will be Capital gain I will have pay and when.
    Secondly,if I have to purchase another property,what is the time limit to purchase.
    Thirdly, where I have to keep money at present.
    Shall be grateful to get quick reply from your end at my e mail [email protected]
    Sincerely yours
    J J.Saraf .

  2. Premalatha says:

    Land purchased on 10/05/1993 for Rs. 30,450/-. now in this land they was constructed house. that house property sold on 23/03/2020 for Rs. 7,03,500/-
    how to calculate cost of acquisition…?

  3. Onkar nath dasaur says:

    I purchased a plot in 1989 costing Rs. on 16.03.2020, I have given power of attorney & received a sum of Rs. 285,000.00 from attorney. Please advise it in order?
    2. Intimate me the amount of LTCG & is it to be taken into account for Income Tax return for FY 2019-20

  4. [5/19, 22:18] SRS: If ACIT not accepting the declared return value of apartment for LTCG us.54 of ITax then ACIT can Reference to valuation officer [Section 55A]
    With a view to ascertaining the fair market value of a capital asset, the concerned Assessing Officer may refer the valuation of the capital asset to a Valuation Officer appointed by the Income-tax Department. ACIT should not deny the benefit on the ground that construction agreement not registered hence the value to be taxed us.50
    [5/20, 12:49] SRS: I myself lived in Prestige ivy Terraces Kaddubissannall Bangalore and I know about it. Every builders register only land agreement as a practice going on from long time even though as per RERA act full value of the apartment construction value and land value to be registered.

    In Tamil Nadu as their stamp act has been amended in 2018, full property value are being registerd

    Where as in karnataka no such amendment under in stampduty act prior to RERA and even after 2018 to till now.

    In our ( it’s my soninlaw matter) case its matter of property invested 2008-2010 with builders and the property sold out in 2015 all perior periods.

    Sale proceeds deposited in LTCG DEPOSITS WITH BANK fetching interest.

    Every income has been declared in the income tax return 2015-16.

    After 4-5 years when approached bank to close the LTCG deposit they advised to approach income tax Officer,Ward for NOC in form – G.

    Applied for NOC in July aug 2019 and matter stands lingering on for long time and in dec ACIT issued notices on various sec for reopening the assessments of 2015-16 after lapses 3-4 years.

  5. vswami says:

    “19 2019-20 289”

    This has been notified long before the outbreak of the corona 19. Since then there has been a sea- change in the national economy. Further, transfers of capital assets though made anterior to the year end of 31-03-2020,- for the purpose of taxation of capital gains- by virtue of the extended date of 30-06-2020 – are to be regarded as transfers as were made before 31-03-2020.

    To one’s understanding, therefore, the CII as originally fixed at 289 , might, logically speaking, require to be refixed and increased suitably so as to reflect the land slide in the economy.

    Any thoughts and viewpoints to eminently spare and share !

    OVER to the FM/ CBDT for favourably due consideration !!!

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October 2021