|Value of Asset* for the year of purchase x CII for year of sale _______________________________________________________________ CII for year of purchase**||xxx|
|*(if the asset was purchased before base year i.e. 2001 take Fair Market Value as on the year 2001)|
|**(if the asset was purchased before base year i.e. 2001 take CII for the year 2001-02)|
Indexed cost is the amount so calculated after taking into consideration the effect of Cost Inflation Index on the value of an asset as done above. Indexed cost can be calculated for the purpose of capital gains on the sale of property under the Income Tax Act for
Cost of Acquisition is the inflated purchase price and cost of the improvement is the indexed cost of expenses incurred on such property like construction etc. The government has issued Cost Inflation Index for the Financial Year 2018-19 at 280 vide its Notification dt 5/06/2017. The Current Cost Inflation Index Table-
|Cost Inflation Index Chart|
|S.No.||Assessment Year||Financial Year||Cost Inflation Index|
|18||2002-03||2001-02 & before 2001||100|
Previous to budget 2017 the year 1981 was taken as the base year and the Cost Inflation Index as prescribed by the Income Tax Department were
|S.No||Assessment Year||Financial Year||Cost Inflation Index|
|1||1982-83||1981-82 & Before 1981||100|
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 in a seamless manner and take maximum benefit of income tax provisions Contact Us Now!!
Cost inflation index for 2018 19 is 280.
Cost inflation index for 2017 18 is 272.
Indexed cost of a property = Cost of Acquisition * CII of the year of transfer/ CII of the year of acquisition
Cost inflation index for FY 2019-20 is 289.
The cost of inflation for 2019 can be calculated with the help of corresponding CII i.e. 289.
The indexing rate for 2019 is 289.
The inflation index is issued by the government of India every year via Finance budget.
Currently, as per income tax law, the base year for Cost Inflation Index is 2001-02. Previous to the amendment made by Finance Act 2017 the base year was 1981-82.
The current index rate for FY 2019-20 is 289.
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