Tuesday, 18 September 2012

Latest Cost of Inflation Index Chart of Assessment Year 2013-14

CBDT has declared awaited Cost Inflation Index for Financial Year 2012-13. The CII is used in claculation of Long Term Capital Gain on Sale of Capital Consideration. If you have invest more than one year Short-Term Capital Assets then you in need of Cost Inflation Index Chart for computing long-term capital gain, cost of acquisition and cost of improvement may be indexed, if required, on the basis of following cost inflation index notified by the Central Government for this purpose. The assets having more than 3 years period consider as Long Term Capital Gain.

Calculation of Long Term Capital Gains (LTCG))

Long Term Capital Gains is computed as below :

LTCG = Full value of consideration received or accruing - (indexed cost of acquisition + indexed cost of improvement + cost of transfer)

Where, Indexed cost of acquisition =Cost of acquisition x CII of year of transfer /CII of year of acquisition

Indexed cost of improvement =Cost of improvement x CII of year of transfer /CII of year of improvement

CII = Cost Inflation Index (Please see chart given below)

Tax liability on LTCG to be taken at 20%.

If total income other than LTCG is less than zero slab,LTCG over the zero slab only attracts tax at 20%.

The following chart showing 32 years Cost of Inflection Index:

Cost Inflation Index Chart
Sl. No.
Financial Year
CII= Cost Inflation Index
Sl. No.
Financial Year
CII= Cost Inflation Index
1
1981-82
100
17
1997-98
331
2
1982-83
109
18
1998-99
351
3
1983-84
116
19
1999-00
389
4
1984-85
125
20
2000-01
406
5
1985-86
133
21
2001-02
426
6
1986-87
140
22
2002-03
447
7
1987-88
150
23
2003-04
463
8
1988-89
161
24
2004-05
480
9
1989-90
172
25
2005-06
497
10
1990-91
182
26
2006-07
519
11
1991-92
199
27
2007-08
551
12
1992-93
223
28
2008-09
582
13
1993-94
244
29
2009-10
632
14
1994-95
259
30
2010-11
711
15
1995-96
281
31
2011-12
785
16
1996-97
305
32
2012-13
852


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