prpri Cost Inflation Index Table upto Financial Year 2020-21 Cost Inflation Index Table upto Financial Year 2020-21

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. Mohinder Sharma says:

    If I invest LTCG amount in REC capital gain bonds for three years, will I be liable to pay capital gain tax on maturity of bonds

  2. Alex says:

    Bought plot 1985 (cost 1 lac), start building house in 2001 and completed in 2012 (cost 42 lacs) and made modification/extension 2015-2017 (cost 28 lacs). How do calculate the the indexed acquisition cost as of 2021:
    – each year of expenditure OR
    – by some other mean to derive the accusation cost as at 2021.

  3. SHIV JINDAL says:

    I have purchase a house in 2007 for Rs 12 Lakh and sold in Rs 40 Lakh. What would be capital gain and if i purchase new house for Rs 50 lakh will there be any capital gain

  4. Dinesh Chandra Bhargava says:

    I understand that a buyer of NRI property in India has to deduct TDS @ 22.88%. If an NRI’s capital Gain is NIL (sale price less than indexed cost), will the buyer still deduct @ 22.88%? In this case, under what conditions will the IT Office issue a NIL TDS Certificate? What will satisfy him? Will the buyer make no deduction then? Shall be obliged by an answer. Thanks

  5. arun says:

    i bought my home in 2000 at a price of rs 250000…..and sell in year of 2021 at price of 1500000 how many amount taxable ..and how many tax claimed by income tax department as indextion

  6. Ishan Choudhary says:

    My mother is 67, a housewife and has never got in the business of filing returns or taxes. In 1989 she got a 539 sq ft single bed apt in Kandivli W, Mumbai for around ₹90000. Now she is looking to sell the same for ₹1.25 crores as per market rates in the area. How much LTCG tax she has to pay? How much exemption can she claim since she has no source of income herself?

  7. 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

    1. Srinivasan Hariharan says:

      Bought 2BHK flat in mumbai for Rs. 85,000 in year 1985-86, sell for Rs. 80,00,000 in year 2020-21. What’s the LTCG calculation

    2. Charan says:

      Hi, As you’re willing to sell the property which you have acquired in 1995, i.e. before 2001, you should calculate indexed cost of acquisition by taking 2000-01 as base year and have to pay tax, if calculation results in capital gain @20%. Hope, this might help you.

  8. 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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July 2021