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 2001-02, to 2019-20.
Cost inflation index chart ( CII) – FY 2001-02 to 2019-20:
| Financial Year | Cost Inflation Index (CII) |
| 2001-02 (Base year) | 100 |
| 2002-03 | 105 |
| 2003-04 | 109 |
| 2004-05 | 113 |
| 2005-06 | 117 |
| 2006-07 | 122 |
| 2007-08 | 129 |
| 2008-09 | 137 |
| 2009-10 | 148 |
| 2010-11 | 167 |
| 2011-12 | 184 |
| 2012-13 | 200 |
| 2013-14 | 220 |
| 2014-15 | 240 |
| 2015-16 | 254 |
| 2016-17 | 264 |
| 2017-18 | 272 |
| 2018-19 | 280 |
| 2019-20 | 289 |
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. 10,0000 in the year 2011-12. He sold the plot in the financial year 2018-19 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. 820000
Indexed cost = purchase price/ cost inflation index for year of purchase * CII for year of sale
= 10,0000/184*280 = Rs. 152170
Capital gain = Rs. 667830
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 2001?
When property has purchased before 2001, fair market value of property on 1/4/1981 should be computed and CII of 2001 – 100 should be considered to compute indexed cost of acquisition.
Example:
Suppose land was purchased in 1999 for Rs. 45000. It is sold in financial year 2018-19 for 12,00,000. Fair market value on 1/4/01 is 55000. In this case, we compute long term capital gain as per following.
Indexed cost = 55000/100*280 = 154000
Sale value = 12,00,000
Capital gain = 10,46,000
Note: To compute capital gain, fair market value as on 1/4/2001 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. Share this post on social media to encourage me to write more.
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