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.

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)

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## One thought on “Cost inflation index ( capital gain index) chart for FY 2001-02 to FY 2019-20”

1. CA Tarannum Khatri says:

5