# Cost inflation index ( capital gain index) chart for year 2014-15 and last 23 years

Cost inflation index ( capital gain index ) is useful to calculate long term capital gain. Indexation can help you to save long term capital gain.Here I present table of index for financial year 2014-15, 2015-16 and last 23 years.

## Cost inflation index chart / capital gain index chart for past 24 years:

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

Update:

Cost inflation index for financial year 2015-16 ( AY 2016-17) is 1081.

### How to use index chart?

The index is for particular year. The year when transaction actually takes place. We can increase past cost by using cost inflation index.

easy way to understand capital gain

#### Example for use of index:

Suppose Mr. A purchased plot at Rs. 10,000 in the year 2001-02. He sold the plot in the financial year 2014-15 for Rs. 3,00,000.

Gain: gain is long term because asset is held for more than 36 months. So we can use index table.

Capital gain = sale value less indexed cost of acquisition.

sale value = Rs. 3,00,000

Indexed cost = purchase price/ cost inflation index for year of purchase * CII for year of sale

= 10,000/426*1024 = Rs. 24037

Capital gain = Rs. 275963.

#### Who notified  capital gain index?

It is notified by central government every year with regards to 75% of CPI for urban non manual employees for the previous year.

Cost inflation index for properties purchased before 1981?

When property has purchased before 1981, fair market value of property on 1/4/1981 should be computed and CII of 1981 – 100 should be considered to compute indexed cost of acquisition.

Example:

Suppose land was purchased in 1976 for Rs. 12000. It is sold in financial year 2013-14 for 12,00,000. Fair market value on 1/4/81 is 22000. In this case, we compute long term capital gain as per following.

[table id=22 /]

Note: To compute capital gain, fair market value as on 1/4/1981 or actual purchase value, whichever is more can be considered for cost of acquisition.

(You can download utility of income tax from our site or income tax website)

I hope you the cost inflation index chart helps you to calculate capital gain. You can also download the pdf of cost inflation index chart by clicking print button.

Shares