Indexed Cost of Acquisition shall be calculated in two steps. Calculating the cost of acquisition of capital assets is the first step. CII of the year in which the capital asset is transferred is multiplied by the cost of acquisition and divided by either CII of 2001-02 or CII of the year in which the asset is first held by the assessee. The following notified Cost Inflation Index shall be used to calculate the acquisition cost:
New Cost Inflation Index Table: Check here the latest cost inflation index table.
Sr.No. | Financial Year | Cost Inflation Index |
1 | 2001-02 | 100 |
2 | 2002-03 | 105 |
3 | 2003-04 | 109 |
4 | 2004-05 | 113 |
5 | 2005-06 | 117 |
6 | 2006-07 | 122 |
7 | 2007-08 | 129 |
8 | 2008-09 | 137 |
9 | 2009-10 | 148 |
10 | 2010-10 | 167 |
11 | 2011-12 | 184 |
12 | 2012-13 | 200 |
13 | 2013-14 | 220 |
14 | 2014-15 | 240 |
15 | 2015-16 | 254 |
16 | 2016-17 | 264 |
17 | 2017-18 | 272 |
18 | 2018-19 | 280 |
19 | 2019-20 | 289 |
20 | 2020-21 | 301 |
21 | 2021-22 | 317 |
22 | 2022-23 | 331 |
23 | 2023-24 | 3481 |
Cost Inflation Index From 1981-82 to 2016-17
F.Y. | CII | F.Y. | CII |
1981-82 | 100 | 1999-00 | 389 |
1982-83 | 109 | 2000-01 | 406 |
1983-84 | 116 | 2001-02 | 426 |
1984-85 | 125 | 2002-03 | 447 |
1985-86 | 133 | 2003-04 | 463 |
1986-87 | 140 | 2004-05 | 480 |
1987-88 | 150 | 2005-06 | 497 |
1988-89 | 161 | 2006-07 | 519 |
1989-90 | 172 | 2007-08 | 551 |
1990-91 | 182 | 2008-09 | 582 |
1991-92 | 199 | 2009-10 | 632 |
1992-93 | 223 | 2010-11 | 711 |
1993-94 | 244 | 2011-12 | 785 |
1994-95 | 259 | 2012-13 | 852 |
1995-96 | 281 | 2013-14 | 939 |
1996-97 | 305 | 2014-15 | 1024 |
1997-98 | 331 | 2015-16 | 1081 |
1998-99 | 351 | 2016-17 | 1125 |
How to calculate indexed cost of acquisition?
To calculate the indexed cost of acquisition, you have to follow three points as given below.
- Cost of acquisition (Your purchase price of the property)
- Cost Inflation Index of the Previous Year in Which the Asset is Transferred (When Property Sold Out)
- Cost Inflation Index of the year in which the asset was first held by the assessee or. 1.4.1981 (now 1-4-2001 w.e.f. F.Y. 2017-18) (whichever is later)
Now to calculate the indexed cost of acquisition, use the following formula.
Cost of Acquisition (Purchase Price) x CII of the year of transfer / CII of the year acquisition = Indexed cost of acquisition
Example to understand Cost of Inflation Index
- A purchased a plot on 4-1-1978 for Rs.1,00,000/-
- The land was sold by A on 1-6-2016 for Rs.18,00,000/-
- The expenses on transfer were 2% of the sale price
- The market value of the land as on 1-4-1981 was Rs. 1,20,000/-
Sale Consideration | 18,00,000/- | |
Less: Expenses on Transfer | 36,000/- | |
Indexed cost of acquisition – 1,20,000 x 1125 / 100 =
|
13,50,000/-
|
13,86,000/-
|
Long-term capital gain | 4,14,000/- |
- Updates on 10-04-2023: For the Financial Year 2023-24 (Assessment Year 2024-25), the CBDT has announced that the Cost Inflation Index will be 348, which has been increased from the 331 previously announced. Notification No. 21 /2023/F.No.370142/5/2023-TPL
i have purchased a plot in [email protected] n expenses to secure the property cost total 1 lakh. this property may be sold in 90 lakh . what will be my LTCG .
I sale a long term house on 30june 17 and incurred cost of improvement on 1 January 2017 wether cost of improvement will indexed or not
Which ITR to use for showing income from Infra bonds redeemable after 5yrs?
hi i would like to know how much income tax i need to pay if i sell plot of mine for rupees 50 lakh..which i purchased in 2009 for rupees 10 lakh
If the immovable property is purchased well before the base reference year how to calculate the cost inflation index applicable to property if it is to be sold now
I have incurred following costs on my residential property which I may want to sell soon.
Cost – 6 lacs in 1997 – 98
Maintenance paid to Society – about Rs.700/- pm for 18 years
Registration cost – about Rs.1.0 lac in 2009
What will be my exemption limit on sale value for assessment of tax. It may sell for about 40lacs now.
Mr. Anis,
Whatever the cost of purchase may be, your CII will be
Cost of Purchase X CII of Year of Sale made / CII of Year of Purchase
like wise
Cost of Improvement X CII of Year of Sale made / CII of Year of Improvement made
after arriving the same, you can claim deduction of registration charges too