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# Cost Inflation Index (CII) 2017-18 and Previous Years

## Cost Inflation Index (CII) Applicable for Financial year 2017-18 and 2018-19

 Financial Year Cost Inflation Index (CII) 2018-19 280 2017-18 272 2016-17 264 2015-16 254 2014-15 240 2013-14 220 2012-13 200 2011-12 184 2010-11 167 2009-10 148 2008-09 137 2007-08 129 2006-07 122 2005-06 117 2004-05 113 2003-04 109 2002-03 105 2001-02 100 Anytime before 1st April 2001 100

Source: Income Tax Website

## Cost Inflation Index (CII) Applicable for Financial year 2016-17 and preceding years

 Financial Year Cost Inflation Index (CII) 2016-17 1125 2015-16 1081 2014-15 1024 2013-14 939 2012-13 852 2011-12 785 2010-11 711 2009-10 632 2008-09 582 2007-08 551 2006-07 519 2005-06 497 2004-05 480 2003-04 463 2002-03 447 2001-02 426 2000-01 406 1999-00 389 1998-99 351 1997-98 331 1996-97 305 1995-96 281 1994-95 259 1993-94 244 1992-93 223 1991-92 199 1990-91 182 1989-90 172 1988-89 161 1987-88 150 1986-87 140 1985-86 133 1984-85 125 1983-84 116 1982-83 109 1981-82 100 Anytime before 1st April 1981 100

## What is Cost Inflation Index (CII)?

Cost inflation index is the index for the inflation rate in the country. Central Board of Direct Taxes (CBDT) issues this index every year.

## What is use of CII?

CII is used while calculating long-term capital gains. CII for the year in which you have purchased the asset and the year in which asset is sold are considered while calculating capital gains. The cost after indexing is deducted from the sale price for calculation of capital gain. So the capital gain tax gets reduced.

However, the benefit of cost indexing is available only in case of long-term capital gain. If the asset is purchased before 1st April 1981 then the cost inflation index for the year 1981-82, i.e., “100” should be taken as CII for that year. If you have made improvement of the asset, then you need to adjust the cost inflation index with the multiplying with the CII of the year the improvement was made.

Cost after Indexing = Cost before indexing * CII for sale year/CII for purchasing year

Capital Gain = Sale price – Cost after indexing

Read more on How to Calculate Long-Term Capital Gain

In Budget 2017, the base year for CII has been shifted from Financial year 1981-82 to 2001-02. New CII is applicable for Assessment year 2018-19 and subsequent years. Therefore for Financial year 2016-17 the old CII will be used.

Source: Income Tax Website

### About Rohit Pithisaria

Rohit Pithisaria founded TaxAdda in July 2012. He is Practicing Chartered Accountant from Jaipur and been in practice for more than 7 years. He is actively writing from very beginning of his professional career and is author of various tax articles and blogs.
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