ParticularsAmount
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

  • Acquisition
  • Improvement

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
1 2019-20 2018-19 280
2 2018-19 2017-18 272
3 2017-18 2016-17 264
4 2016-17 2015-16 254
5 2015-16 2014-15 240
6 2014-15 2013-14 220
7 2013-14 2012-13 200
8 2012-13 2011-12 184
9 2011-12 2010-11 167
10 2010-11 2009-10 148
11 2009-10 2008-09 137
12 2008-09 2007-08 129
13 2007-08 2006-07 122
14 2006-07 2005-06 117
15 2005-06 2004-05 113
16 2004-05 2003-04 109
17 2003-04 2002-03 105
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
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 in a seamless manner and take maximum benefit of income tax provisions Contact Us Now!!


Frequently Asked Questions

Q- What is the cost inflation index for 2018 19?

Cost inflation index for 2018 19 is 280.


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

Cost inflation index for 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?

Cost inflation index for FY 2019-20 is 289.


Q- What is the cost of inflation for 2019?

The cost of inflation for 2019 can be calculated with the help of corresponding CII i.e. 289.


Q- What is the indexing rate for 2019?

The indexing rate for 2019 is 289.


Q- How do you calculate inflation index?

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


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

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.


Q- What is current index rate?

The current index rate for FY 2019-20 is 289.


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.