Markets of property, shares and jewellery are speculative in nature. People buy these assets either for security (Investment) or for speculation. The transactions in these assets are also subjected to capital gain tax.

Capital gain can be either long term or short term depending upon the period of holding. Long term is subjected to less tax than short term. Rate of tax on long term ranges from 0% to maximum 20%.

The other benefit of long term asset that they can be indexed. Govt. has come out with index table called Cost Inflation Index whose base year was fixed as 1-4-1981. In Finance Bill 2017 the Govt. has taken a very bold step and has shifted the base year from 1981 to 2001 for the benefit of investors.

Also period of holding of land and / or building has been reduced from 36 months to 24 months.

Today in this article I am providing entire list of Cost Inflation Index from Financial Year 2001-02 to Financial Year 2020-21.

As per Notification No. So 3266(E) [No. 63/2019 (F.No. 370142/11/2019-TPL)], Dated 12-9-2019, following table should be used for the Cost Inflation Index:

Sl. 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

Note: the above list is as amended by Finance Act, 2020

Disclaimer: The contents of this article are for information purposes only and does not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

(Republished with Amendments by Team Taxguru)

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  1. HK Prashanth says:

    You have said that the CII has moved to 2001. Does that mean any property acquired earlier than 2000, need not pay any tax?
    Please explain.
    I have property acquired in 1995. Hence the question

  2. vswami says:

    In changing and re fixing the base year by itself may not be a bad idea ; and as such cannot be faulted.
    Nonetheless, the nagging doubt in one’s mind this- does it stand to reason why the extant indexation has been left otherwise untouched ; except by simply adding the Index for 2016-17. To be precise, are not, by leaving the Index for the new Base year 2001-02 at 406,holders of property acquired before 1-4-2001 deprived of the benefit of indexation to that extent (i.e.406 points ) ?
    Any different way of viewing or construing the change; over to tax pundits to enlighten !

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January 2021