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 fy 2014-15

 

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.

Recommended read:

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.

ParticularsComputationRs.
Sale value12,00,000
Less Indexed purchase value22000/100*9392,06,580
Long term capital gain993420
Tax 198684

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.