Cost Inflation Index
- Blog|Income Tax|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 1 February, 2021
Steps to Calculate the Indexed Cost of Acquisition:
We must follow two step approach to calculate the Indexed Cost of acquisition. Step1 – Calculate the Cost of Acquisition of Capital Assets. Step2 – Multiply Cost of Acquisition with Cost Inflation Index of the year when the asset was transferred and divide it by Cost Inflation Index of the year in which the asset was first held by the assessee. In case the Asset was acquired before 2001, then Cost Inflation Index of 2001-02 need to be used in place of Cost Inflation Index of the year in which the asset was first held by the assessee.
Indexed Cost of Acquisition |
= |
Cost of Acquisition |
X |
CII of the year in which asset is transferred |
|
|
|
|
CII of the year in which asset is first held by assessee or CII of 2001-02, whichever is later |
Table of Notified CIIs:
Financial Year |
CII |
Financial Year |
CII |
2001-02 |
100 |
2011-12 |
184 |
2002-03 |
105 |
2012-13 |
200 |
2003-04 |
109 |
2013-14 |
220 |
2004-05 |
113 |
2014-15 |
240 |
2005-06 |
117 |
2015-16 |
254 |
2006-07 |
122 |
2016-17 |
264 |
2007-08 |
129 |
2017-18 |
272 |
2008-09 |
137 |
2018-19 |
280 |
2009-10 |
148 |
|
|
2010-11 |
167 |
|
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