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  1. Income Tax
  3. Cost Inflation Index (CII) for FY 2023-24 (AY 2024-25)

Cost Inflation Index (CII)-FY 2023-24

Updated on: 23 Nov, 2023 01:22 AM

Inflation refers to the overall increase in the prices of goods and services in an economy over time. Inflation reduces the purchasing power of money, which means that over time, the same amount of money can buy fewer goods and services. For example, you bought two units of goods for Rs 100 today, tomorrow only one unit might be available for Rs 100 due to inflation.

Contents

What is Cost Inflation Index?

Cost Inflation Index (CII) is a tool used in India to adjust the purchase price of an asset for inflation, as inflation can impact the cost of an asset over time. CII is used to adjust the purchase price of an asset for inflation so that the actual inflationary gain or loss can be accurately determined when the asset is sold.

The CII is used to compute long-term capital gains tax in India. Long-term capital gains arise when an asset is sold after being held for more than a specified period. The CBDT announces the CII for a particular financial year before the start of the financial year.

CBDT notifies that the Cost Inflation Index (CII) for FY 2023-24 (AY 2024-25) is 348.

Particulars Amount
Cost of Acquisition * x CII for the year of sale xxx
CII for the year of purchase**
*(if the asset was purchased before base year, i.e., FY 2001-02 take Actual Cost or Fair Market Value as on 1st April 2001 as the Purchase Price)
**(if the asset was purchased before base year, i.e., FY 2001-02 take CII for the year 2001-02 is 100)

Indexed cost is the amount so calculated after considering the effect of Cost Inflation Index on the value of an asset as done above. Indexed cost can be calculated for capital gains on the sale of property under the Income Tax Act for

  • Acquisition
  • Improvement

Indexed Cost of Acquisition is the inflated purchase price, and Indexed cost of the improvement is the indexed cost of expenses incurred on such property as construction, repairs, renovation etc. The Current Cost Inflation Index Table-

Cost Inflation Index Chart
S.No. Assessment Year Financial Year Cost Inflation Index
1 2024-25 2023-24 348
2 2023-24 2022-23 331
3 2022-23 2021-22 317
4 2021-22 2020-21 301
5 2020-21 2019-20 289
6 2019-20 2018-19 280
7 2018-19 2017-18 272
8 2017-18 2016-17 264
9 2016-17 2015-16 254
10 2015-16 2015-16 240
11 2014-15 2013-14 220
12 2013-14 2012-13 200
13 2012-13 2011-12 184
14 2011-12 2010-11 167
15 2010-11 2009-10 148
16 2009-10 2008-09 137
17 2008-09 2007-08 129
18 2007-08 2006-07 122
19 2006-07 2005-06 117
20 2005-06 2004-05 113
21 2004-05 2003-04 109
22 2003-04 2002-03 105
23 2002-03 2001-02 & before 2001 100
S.No Assessment Year Financial Year Cost Inflation Index
1 1982-83 1981-82 & Before 1981 100
2 1983-84 1982-83 109
3 1984-85 1983-84 116
4 1985-86 1984-85 125
5 1986-87 1985-86 133
6 1987-88 1986-87 140
7 1988-89 1987-88 150
8 1989-90 1988-89 161
9 1990-91 1989-90 172
10 1991-92 1990-91 182
11 1992-93 1991-92 199
12 1993-94 1992-93 223
13 1994-95 1993-94 244
14 1995-96 1994-95 259
15 1996-97 1995-96 281
16 1997-98 1996-97 305
17 1998-99 1997-98 331
18 1999-00 1998-99 351
19 2000-01 1999-00 389
20 2001-02 2000-01 406
21 2002-03 2001-02 426
22 2003-04 2002-03 447
23 2004-05 2003-04 463
24 2005-06 2004-05 480
25 2006-07 2005-06 497
26 2007-08 2006-07 519
27 2008-09 2007-08 551
28 2009-10 2008-09 582
29 2010-11 2009-10 632
30 2011-12 2010-11 711
31 2012-13 2011-12 785
32 2013-14 2012-13 852
33 2014-15 2013-14 939
34 2015-16 2014-15 1024
35 2016-17 2015-16 1081
36 2017-18 2016-17 1125

Also, to facilitate users and provide ease in knowing the CII applicable to the transaction the Income Tax Department has given on its official website the utility to know CII applicable https://www.incometaxindia.gov.in/Pages/utilities/Cost-Inflation-Index.aspx To file your ITR seamlessly and take maximum benefit of income tax provisions Contact Us Now!!

Frequently Asked Questions

Q- What is the cost inflation index for FY 2023-24?

The cost inflation index for FY 2023-24 is 348.

Q- What is the cost inflation index for FY 2017-18?

The cost inflation index for FY 2017-18 is 272.

Q- How do you calculate the cost inflation index of a property?

Indexed cost of a property = Cost of Acquisition * CII of the year of transfer/ CII of the year of acquisition

Q- What is the cost inflation index for FY 2019-20?

The cost inflation index for FY 2019-20 is 289.

Q- What is the indexing rate for 2019?

The indexing rate for 2019 is 289.

Q- How do you calculate the inflation index?

The inflation index is issued by the government of India every year via Finance budget.

Q- What is the base year of the cost inflation index?

As per income tax law, the base year for Cost Inflation Index is FY 2001-02. Previous to the amendment made by Finance Act 2017, the base year was 1981-82.

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CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.