Article discusses Meaning of Cost Inflation Index (CII) which is used for Computation of Long Term Capital Gain. Cost Inflation index are Notified by CBDT every year and till date CBDT has notified Cost Inflation Index for the Financial Year 1981-82 to Financial year 2024-25. Cost Inflation index are used for computing indexed cost of acquisition.
What is Cost Inflation Index (CII)?
It is a measure of inflation that finds application in tax law, when computing long-term capital gains on sale of assets. Section 48 of the Income-Tax Act defines the index as what is notified by the Central Government every year, having regard to 75 per cent of average rise in the consumer price index (CPI) for urban non-manual employees for the immediately preceding previous year. Therefore, if we consider that price of a capital asset has risen in tandem with base price rise, then if one want to sell an asset and replace it, the cost allowed even after indexation will be lesser than the price payable for new asset. However, in case of many capital asset the price rise is lesser than market price and in many cases it is higher.
How does Cost Inflation Index (CII) help in capital gains computation? Capital gain, as you know, arises when the net sale consideration of a capital asset is more than the cost. Since “cost of acquisition” is historical, the concept of indexed cost allows the taxpayer to factor in the impact of inflation on cost. Consequently, a lower amount of capital gains gets to be taxed than if historical cost had been considered in the computations.
Formula for computing indexed cost is (Index for the year of sale/ Index in the year of acquisition) x cost.
For example, if a property purchased in 1991-92 for Rs 20 lakh were to be sold in A.Y. 2009 -10 for Rs 80 lakh, indexed cost = (582/199) x 20 = Rs 58.49 lakh. And the long-term capital gains would be Rs 21.51, that is Rs 80 lakh minus Rs 58.49 lakh.
Cost Inflation Index:- Cost inflation index (CII) as notified by Central Government alongwith analysis of the same is as under:
Cost Inflation Index As Applicable From Financial Year 1981-82 To Financial Year 2016-17
| FINANCIAL YEAR | COST INFLATION INDEX | Increase in CII and 75% of percentage of real inflation allowed | Real inflation % of CII Increase allowed / 3 X 4 |
| 1981-1982 | 100 | ||
| 1982-1983 | 109 | 9 = 9% | 12% |
| 1983-1984 | 116 | 7= 6.422 | 8.56% |
| 1984-1985 | 125 | 9=7.7586 | 10.34% |
| 1985-1986 | 133 | 8=6.4 | 8.53% |
| 1986-1987 | 140 | 7=5.263 | 7.02% |
| 1987-1988 | 150 | 10=7.1428% | 9.52% |
| 1988-1989 | 161 | 11=7.333% | 9.78% |
| 1989-1990 | 172 | 11=6.8323% | 9.11% |
| 1990-1991 | 182 | 10=5.8139% | 7.75% |
| 1991-1992 | 199 | 17=9.340% | 12.45% |
| 1992-1993 | 223 | 24=12.060% | 16.08% |
| 1993-1994 | 244 | 21=9.4170% | 12.56% |
| 1994-1995 | 259 | 15=6.1475% | 8.20% |
| 1995-1996 | 281 | 22=8.494% | 11.33% |
| 1996-1997 | 305 | 24=8.5409% | 11.39% |
| 1997-1998 | 331 | 26=7.8549% | 10.47% |
| 1998-1999 | 351 | 20=6.0423% | 8.06% |
| 1999-2000 | 389 | 38=10.826% | 14.44% |
| 2000-2001 | 406 | 17=4.370% | 5.83% |
| 2001-2002 | 426 | 20=4.926% | 6.57% |
| 2002-2003 | 447 | 21=4.93% | 6.57% |
| 2003-2004 | 463 | 16=3.58% | 4.77% |
| 2004-2005 | 480 | 17=3.67% | 4.90% |
| 2005-2006 | 497 | 17=3.54% | 4.72% |
| 2006-2007 | 519 | 22=4.43% | 5.90% |
| 2007-2008 | 551 | 32=6.17% | 8.22% |
| 2008-2009 | 582 | 31=5.62% | 7.50% |
| 2009-2010 | 632 | 50=8.60% | 11.46% |
| 2010-2011 | 711 | 79=12.36% | 16.49% |
| 2011-2012 | 785 | 74=10.41% | 13.88% |
| 2012-2013 | 852 | 67 = 8.54% | 11.38% |
| 2013-2014 | 939 | 87 =10.21% | 13.62% |
| 2014-2015 | 1024 | 85 = 9.05% | 12.07% |
| 2015-2016 | 1081 | 57 = 5.57% | 7.42% |
| 2016-2017 | 1125 | 44 = 4.07% | 5.43% |
Cost Inflation Index from Financial Year 2001-02 to Financial Year 2024-25
In order to revise the base year for computation of capital gains, section 55 of the Income Tax Act, 1961 was amended vide Finance Act, 2017 so as to provide that the cost of acquisition of an asset acquired before 01.04.2001 shall be allowed to be taken as fair market value as on 1st April, 2001 and the cost of improvement shall include only those capital expenses which are incurred after 01.04.2001. Cost inflation index for Long Term Capital Assets sold after 01.04.2017 as notified by CBDT Notification No. 44/2017 dated 05.06.2017 as amended from time to time.
| TABLE | ||
| SI. No. | Financial Year | Cost Inflation Index |
| (1) | (2) | (3) |
| 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 |
| 20 | 2020-21 | 301 |
| 21 | 2021-22 | 317 |
| 22 | 2022-23 | 331 |
| 23 | 2023-24 | 348 |
| 24 | 2024-25 | 363 |
Last Updated on 25.05.2024
(Republished with Amendment, Source -Income Tax Website)
Author Bio
My father bought house in Feb. 1978 at Rs. 37,000/- and now we are selling at 98,00,000/-lacs. How much will be capital gain and how much capital gain we have to pay?
like the tax book
How to calculate the capital gain for property purchased prior to 1981-82?
I booked a flat in dec 2004 and paid Rs 5 lacs as first instalment. thereafter the project was delayed. I was finally given possession in june 2013 for Rs 37 lcs including the Rs 5 lacs paid in 2004. I spent rs 2.50 lacs on regn and 15k on legal fees. what is the total coat of purchase? I executed sale deed in june 2013 and now want to sell . is it short term capital gain or long term and what is the purchase price for tax purposes.
My mother purchase a property in oct 1988 @ rs 70000/-
sold on 24/03/2014 @ Rs 38lac ( govt Value 39.07 lac)
registry expenses bear by me rs 195400/-
pls calculate capital gain tax
dear sir, i bought aflat in 1981 at 58000 and sold it in 2014 at 12 lkhs,( in 2007 i spent rs. 1.5 lakh for improvement, lost receipts) how much capital gains tax i have to pay and when?
The house bought my father was at the cost of Rs 17000 ( SEventeen thousand) in the year 1977 and if it is sold at a cost of Rs 7,00,000 ( 7 lakhs ) now in 2014 what would be capital gain and the amount of capital gain tax?
Please let me know the tax amount.
Just for Example
Name-A bought a land in 1960-(“A” not remember Price of that property)
Name-B sold it in 3,00,00,000
How much capital gain should they pay
Sir,
My father purchased a land at 4000/- in 1975, invested on improvement and built a residential house where we stayed years togethers. On our parents demise myself and my only sister sold the land (demolised house) in three parts at a total of rs 45 lakh in 2014.
What will be our tax and how to calculate the amount invested by my father on improvent of the land.
Thanks.
sir I buy a residential land in 2010 for 8 lac
I sold it in 2014 for 11 lac
what will tax
sir,
actually during the f.y. 2013-14 my client sold gold ornaments which were purchased in 1985-86 but purchase price is not known..bill of purchase is missing. how long term capital gain will be calculated. please suggest me.
Dear Sir
I have purchased a plot at Mysore for Rs.1,75,000/- in 2006-202-07. I want to sell and I am getting an offer for Rs24 lac. Will I have to pay any tax or without tax can I deposit in National Bond. Please advise me. Thank you sir
Hello Sir,
I purchased an apartment in 2012 sep. builder delayed the possession from 2013 to 2014 Nov. this is still under construction.
i plan to sell it asap for 77 lakhs. original cost of the property is 53 lakhs. on todays date i can close the loan by paying 38,40,000 to the bank. what will be the capital gains tax that i need to pay. in case i am not investing again on my name but giving the profit money to my friend who will buy a property on her name. will i be still taxed? how much will that amount be?
whats the best way to mitigate the tax affair?
Please advise.
Best Regards,
Chandan
it is a coommon doubt,
wether 10% tax option on the capital gains
without doing indexation
is available or not…
when a old house/flat is sold recently say in 2013/2014,
which was purchased long ago, say in 1980.
please reply.
Hi Sir,
I am buying one 40 years old house and dont have proof of its age.
How to get reduction in stamp duty as it is very old house.
I took a residential property @ 16.5 lakhs in 1997-98 in Mumbai. I want to sell now at 3.20 crores.
I want to buy a residence for 2.20 crores.
What will be tax liability ?
For a land property received as gift from mother, how much capital gains tax I have to pay for the proceeds received if I sell the land in the same month I received the land.
my father purchase a residential plot in 1987 and registry is done in 2006 by the society,and sale the plot in 25 lakh,my father is a farmer,does any kind of tax should be paid ???
I have sold property to Rs. 3000000/- in 7 April 2014 which was purchased a Semi construct house property from a society in 2003-2004 Rs. 440000/- and
cost of finishing in 2004-2005 Rs. 122600/- and
Cost of improvement of house 1st & 2nd Floor in 2005-2006 Rs. 617400\-
Stamp Duty,Registration Fees and Legal Expenses in 2012-2013 Rs. 77000\-
and I purchased Residential Plot against above Property Rs.750000\- and Stamp Duty,Registration Fees and Legal Expenses Rs.50000\-
Kindly let us know whether I am liable to pay any tax.
my father gets a land from his grand father before 1/4/1981 now he want to sell it.
please tell me how to get FMV of land on 1/4/1981.
Hello Sir,
I need to know the then prevalent market value/government rate of a land in Kolkata 1982, where and how I can find it. I have market value estimated in 2009.
Thanks
I bought a house in march1989 for 5 lakhs/ I sold it for 1 ctore in march 2014. what will be my capital gain tax
(a) with indexation and
(2) without indexation (If permitted).
Other than this transaction I have a annual taxable income of Rs. 4 lakhs by way of pension and interests on FDs
sir,
I want to ask that for what period indexation has been made if the capital assets has been disclosed in VDIS scheme of the Government which was initiated in 1997. I would also like to add that what if assesse does not have any invoice and purchase record of the above mentioned capital assets.
whether indexation will be allowed on a property purchased in installment basis yearly on the payment of each installment or will it be allowed when the property is transferred at the end of the payment. please clarify and support out with case law if any??
Dear Sir
I am a Sr. Citizen and purchase a flat in Noida Sec – 82 in the year 2001 @ 1,88,000/-. and only a single flat is in my name.
At the time of sale someone is offering me to give me 20,00,000/-
I don’t have any PAN Card.
Is there any tax liablity to me on the sale of this flat.
Thanks
Kusum Lata
I wants know about sale of Residential Property.Case is as under.
Property purchased on 21/02/2000 @ 394500
Going to sale, in this month @ Rs.15,00,000/- by sale deed
is it possible to sell property below ready reckoner value ?
Further I will purchase new flat against sale of old flat, agreement value would be above Rs.50,00,000/-.
Kindly let us know whether I am liable to pay any tax.
My father purchased a land for Rs.11060.00 1968 and further build a residential house for both own use and rental purpose in the yr 1972 spending Rs.115000.00 and further did alteration in the yr 1995 spending 125000.00. Now, after his death we (me and my brother) want to sell. Offer price is Rs.1.00 cr. Can you please give the cost as per CII for the yr 2013-14.and net long term capital gain tax implication and the way to get exempted from pay LTGT.
sir
I purchased a site at Bangalore in the year 1980 for Rs 7700/-. I built a ground floor in the year 1989 at a cost of 2,25000/-. I built the first floor in the year 1992 at a cost of Rs 250000/- Since the constructions were made by me using the labour contract There are no records to submit. There is an offer of 90,00000/- for the property. Pl let me know what will be the capital gains on the sale and also let me know the ways to avoid capital gains. Further is there any measure to calculate the inflationary value in this case
sir
I purchased a site at Bangalore in the year for Rs 7700/-. I built a ground floor in the year at a cost of 2,25000/-. I built the first floor in the year at a cost of Rs 250000/- There is an offer of 90,00000/- Pl let me know what will be the capital gains on the sale and also let me know the ways to avoid capital gains
WHAT IS CAPITAL GAIN & WHAT IT APPLICABILT
IS CAPITAL GAIN CHARGE ON SHARES ,GOLD ,PROPERTY , AND WHAT OTHER COVWERD UNDER IT. AND ITS RULES
Dear Sir,
i bought a a 300 sq.ft flat for Rs.21000.00 in 1975 in Kalyan-MH
Now I want to sell it say for Rs.15 lakhs. How much tax I may need to pay?
I have no pension & Where Can I invest the capital gains for my future source of Income.
Pl do advise.
T&R
JJoshy
Purcahsed Property on 31 Dec 2009 @ 700000/- including all stamps and other exp.
sold that property in 19 Dec 2012 @ 2500000/-. ( Not even 3 yrs completed).
what would be my tax???
Dear sir: In FY 2012-13, I have sold a house property that was constructed and related costs of construction incurred over 8 years in a distributed manner during 1980-81 to 1989-90. For assessing capital gains tax in this case, is indexation of capital cost of acquisition to be done year-wise for each year’s cost incurred by applying the index factor for that year and summed up over all the years or for the cumulative cost of acquisition in the year of completion of construction by applying the index factor for that one year only ? Thanks in anticipation of your early clarification:
Dear Sir,
I am Sr. Citizen and annual Income is Rs 5 lac p.a.
I have purchased a residential flat in Noida in Feb 1994 at price of 4.57 Lacs.
I want to sell it in Nov 2012 and purchase commercial property in Noida.
The sale price is Rs. 65 Lacs & new comm property is for Rs. 66 lac.
What capital gain tax I have to pay ?
Can I save capital gain tax by investing in capital gain Bonds ?
Thanks
I purchased housefor₹375000 on 1 4.1967 and Sold on 20 .1 2022 for₹87lakhs how to calculate capital gain and taxtobe paid
sir what is the cost inflation index of financial year 2012-2013 ??
if purchasing a old house say 25 years old then how indexing will be done
what would be probable cost index for year 2012 -13 .
when it will officialy publish .
Capital Gains
In the year 1999, I had bought a flat in Bangalore. This was bought on loan thru HDFC. While I paid all the monies (initial and EMI), it was bought in the joint name of my husband and me. As it stands, the flat is free from all loans and is jointly held by us.
Additionally, I have recently inherited 2 floors of a lease hold property (plotted house). Though the property is more than 25 years old, I have only inherited it 6 months ago. This is a 3 floor property and is located in NCR.
Recently, a builder has approached me and offered to rebuild the property after he has acquired a floor (i.e. excluding my 2 floors) from my brother. He is suggesting that we collaborate and rebuild the premises at his cost as per the current bye laws. In lieu of this he has offered me 2 floors and some consideration (vide cheque). Currently, I stay and use both the floors of this property.
My questions are:
a)
If I enter into this deal, will the consideration received by me from the builder attract long term capital gain tax? If yes, how can I save it as I also own a flat in Bangaluru.
b)
If I enter this deal and sell one of the two floors (i.e. retain only one)and then within the next few months buy another residential property equal to the sale price of one floor and cheque consideration, will it attract short term or long term capital gain? If yes, how can I save it as I also own a flat in Bangaluru.
c)
Should I sell my Bangaluru flat, will the consideration received by me from the builder still attract long term capital gain tax? If yes, how can I save it ?
d)
Should I gift/relinquish my Bangaluru flat to my husband, will the consideration received by me from the builder attract long term capital gain tax? If yes, how can I save it ?
In short, what is the best option to save Capital Gain tax while keeping the transaction in cheque? (I also understand that the assessee should not own more than one
residential house other than the residential house in which he
has invested as on the date of transfer…This is bit confusing)
I want a clarification regarding the Indexation benefit applicable for the following securities.
I had bought a structured product ( Secured Redeemable Non convertible debentures) on 29th August 2008. These securities were listed on the BSE. The redemption date was on 29th Nov. 2011. The redemption value was on Par. The interest on the debenture was linked to closing level nifty compared to the opening Nifty.
Can we claim indexation benefits for the interest paid on the debentures ? If not what would be the applicable taxes on the interest ?
Thanks for your response.
Sir,
I have purchased a land in Aurangabad, Maharashtra in the year 1989-90 valued Rs. 94,260.00. Now I have sold it for Rs. 37,72,000 on today 17.07.2012. Please let me know Which Cost Inflation Index is applicable for Capital Gain and how much Tax is to be paid. At which date I have to pay Capital Gain Tax.
Thanks.
I purchased a flat from builder in 10/2/2005 for 23,81,000/- in Bangalore but and as practiced by most builder it was registered at 8,87,056/- at govt value. I have the documents for both.
Now on 15/03/2012 I sold the flat for 45,00,000/- .
I have also purchased another flat and paid around 20,00,000/- as part payment to the builder for the new flat so far. According to sale agreement I will get the flat registered in my name in 2014 which is under construction now. However an agreement of sale is already signed with the builder.
Q1. What should be the Cost of acquisition of my previous flat (the full purchase value or the registered value)
Q2. I did some improvements on the flat and spend around 2,50,000/- but I do not have any receipt of the same can I include it in the cost of improvement.
Q3. As I had sold the flat on 15/03/2012, do I have to declare capital gain in tax return to be filed by 31 July 2012 or next year as I have 6 months time to reinvest in another flat.
Q4. As my new flat will be registered in my name in 2014 which is under construction now, is it a valid property reinvestment which I can show now.
I wants know about sale of Residential Property.Case is as under.
Property purchased on 2004 @ 6,00,000/- –
Going to sale, in this month @ Rs.15,00,000/-.
Kindly let us know how much tax liable to pay
urgently
Hi, I bought a flat in Oct 2007 and sold it in June 2012. After purchasing the flat I got some work done but I do not have any papers to show the amount of expense incurred. How to include that expense into my cost for the calculation of CG? Also I am about to get the registry done of another flat which I booked 3 years back. I would be paying the balance to the builder in 1 year time. Is it necessary to deposit the CG proceeds to the CG Account till then?
My father purchased a land in 1971 for INR 1000. He expired in 1993 and my mother expired in 1994. I want to sell the property now. what is the indexed price of aquisition and what would be the impact of Long Term Capital Gains on the Proceeds of the Sale.
I hope this is going to assist me the long way in the study of taxation, Thank you for your knowledge
Can somebody tell CII for the year F. Y. 2012-13? If I am selling a property woth next month, the Cost Inflation Index of the current year i.e. 2011-12 will be applicable or 2012-13
I HAVE ENTER INTO AGREEMENT IN 14.08.2001 FOR PURCHASE OF FLAT FOR RS. 1202793.00 AND TOOK POSSISSION ON 04.05.2003 NOW SELLING FOR rS. 10000000.00
WHAT WILL BE MY TAX LIABILITY
suppose I purchase flat in 2007-2008 for 40 lacs and paid Rs. 10 lacs in 2010-11. I sold the flat in 12-13 for 80 lacs. Now shall i get indexation benefit on Rs 10 lacs for calculation of long term capital gain. How the long term capital gain shall be calculated
Sales proceeds 80 lacs
Less indexed cost
50 x indexation
10 x ??
Total Cost = ??
i book a house in R.D.A. in1987 on an emi of rs. 5000/- per month & final registry done on 1997
the total cost of purchese is 750000/- now i sold this on 2200000/- what is the capital gain & what is incom tax on that
cost infialation index FY 2012-13 AY 2013-14