Cost Inflation Index – Capital Gain

Know the Cost inflation index rate for the calculation of capital gain in India updated till 2014 – 2015. we have prepared a cost inflation chart as notified by the central government in this regard.

Cost Inflation index for the Financial Year 2014-2015 has been announced to be 1024

For computing long-term capital gains, knowledge of cost inflation index is necessary. The capital gains will be computed after deducting the indexed cost of acquisition (purchase) from the full value of consideration. The cost of purchase of the asset will be increased by applying the cost inflation index (CII). Once the cost inflation index is applied to the cost of acquisition, it becomes indexed cost of acquisition.

In computing capital gains arising from the transfer of a long term capital asset, deduction can be claimed for the cost of acquisition and the cost of Improvement after indexing them.

Cost inflation Index” for any year means such index as the central government may, having regard to 75% of average rise in consumer price index for urban non manual employees for the immediately preceding previous year to such previous year by notification in the official gazette specify in this behalf.

This means an amount which bears to the cost of acquisition, the same proportion as CII for the year in which the asset is transferred bears to the CII for the first year in which the asset was held by the assessee or for the year beginning on 1st April, 1981, whichever is later.

Cost Inflation Index – For Capital Gain

The cost inflation indices for the financial years so far have been notified as under:

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

Cost Inflation Index – Chart showing Change of Rate

The increase in cost inflation rate has shown in the chart below.

Cost inflation Index 1981 to 2014-2015

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Feedback 122 Cost Inflation Index – Capital Gain

  1. Hello,

    Thanks for useful information. I’m currently looking for a cost of inflation index value for the year 1967-68. Would you be able to retrieve this data?

    Reply

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