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Cost Inflation Index (CII) 2020-21 and Previous Years

Table of Contents

Cost Inflation Index (CII) Applicable from Financial Year 2017-18

Financial Year Cost Inflation Index (CII)
2020-21 301
2019-20 289
2018-19 280
2017-18 272
2016-17 264
2015-16 254
2014-15 240
2013-14 220
2012-13 200
2011-12 184
2010-11 167
2009-10 148
2008-09 137
2007-08 129
2006-07 122
2005-06 117
2004-05 113
2003-04 109
2002-03 105
2001-02 100
Anytime before 1st April 2001 100

Source: Income Tax Website

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

Financial Year Cost Inflation Index (CII)
2016-17 1125
2015-16 1081
2014-15 1024
2013-14 939
2012-13 852
2011-12 785
2010-11 711
2009-10 632
2008-09 582
2007-08 551
2006-07 519
2005-06 497
2004-05 480
2003-04 463
2002-03 447
2001-02 426
2000-01 406
1999-00 389
1998-99 351
1997-98 331
1996-97 305
1995-96 281
1994-95 259
1993-94 244
1992-93 223
1991-92 199
1990-91 182
1989-90 172
1988-89 161
1987-88 150
1986-87 140
1985-86 133
1984-85 125
1983-84 116
1982-83 109
1981-82 100
Anytime before 1st April 1981 100

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

 

Prateek Agarwal

Prateek Agarwal is a Practicing Chartered Accountant from Jaipur and been in practice for more than 7 years. He writes mainly about GST and Finance.

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