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Cost Inflation Index (CII) 2018-19 and Previous Years

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

Financial YearCost Inflation Index (CII)
2018-19280
2017-18272
2016-17264
2015-16254
2014-15240
2013-14220
2012-13200
2011-12184
2010-11167
2009-10148
2008-09137
2007-08129
2006-07122
2005-06117
2004-05113
2003-04109
2002-03105
2001-02100
Anytime before 1st April 2001100

Source: Income Tax Website

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

Financial YearCost Inflation Index (CII)
2016-171125
2015-161081
2014-151024
2013-14939
2012-13852
2011-12785
2010-11711
2009-10632
2008-09582
2007-08551
2006-07519
2005-06497
2004-05480
2003-04463
2002-03447
2001-02426
2000-01406
1999-00389
1998-99351
1997-98331
1996-97305
1995-96281
1994-95259
1993-94244
1992-93223
1991-92199
1990-91182
1989-90172
1988-89161
1987-88150
1986-87140
1985-86133
1984-85125
1983-84116
1982-83109
1981-82100
Anytime before 1st April 1981100

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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