CBDT Notified Cost Inflation Index FY 2017-18 (AY 2018-19) is 272

The Government of India, Ministry of Finance (Department of Revenue), Central Board of Direct Taxes published in the Gazette of India, Extraordinary Notification No. 44 /2017/F.No.370142/11/2017-TPL dated 05-06-2017 the Cost Inflation Index for Financial Year 2017-18 which is 272.

The cost of inflation index (CII) has been notified by the Central Government every year by notification in the Official Gazette. The cost of acquisition/improvement will, thus, be indexed with reference the rate of applicable for the relevant year. The Cost of Inflation Index is mainly used to compute Long term capital gain.

New Cost of Inflation Index (CII) come into force w.e.f. 01-04-2018

Financial Year

Cost Inflation Index

2017-18

272

2016-17

264
2015-16

254

2014-15

240
2013-14

220

2012-13

200
2011-12

184

2010-11

167
2009-10

148

2008-09

137
2007-08

129

2006-07

122

2005-06

117
2004-05

113

2003-04

109
2002-03

105

2001-02

100


MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TEXES)

NOTIFICATION
New Delhi, the 5th June, 2017

INCOME-TAX

S.O. 1790(E).—In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the Cost Inflation Index as mentioned in column (3) of the Table for the Financial Years mentioned in the corresponding entry in column (2) of the said Table, namely:—

TABLE

Sl.No. Financial Year Cost Inflation Index
(1) (2) (3)
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 2010-11 167
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
  1. This notification shall come into force with effect from 1st day of April, 2018 and shall accordingly apply to the assessment year 2018-19 and subsequent years.

[Notification No. 44/2017/F.No.370142/11/2017-TPL]
ABHISHEK GAUTAM, Under Secy. (Tax Policy & Legislation)


Old Cost Inflation Index effective for the period upto 31-03-2017 i.e. Financial Year 2016-17.

Financial Year

Cost of Inflation Index (CII)

2016 – 17

1125

2015 – 16

1081

2014 – 15

1024

2013 – 14

939

2013 – 14

939

2012 – 13

852

2011 – 12

785

2010 – 11

711

2009 – 10

632

2008 – 09

582

2007 – 08

551

2006 – 07

519

2005 – 06

497

2004 – 05

480

2003 – 04

463

2002 – 03

447

2001 – 02

426

2000 – 01

406

1999 – 00

389

1998 – 99

351

1997 – 98

331

1996 – 97

305

1995 – 96

281

1994 – 95

259

1993 – 94

244

1992 – 93

223

1991 – 92

199

1990 – 91

182

1989 – 90

172

1988 – 89

161

1987 – 88

150

1986 – 87

140

1985 – 86

133

1984 – 85

125

1983 – 84

116

1982 – 83

109

1981 – 82

100


FAQ on Cost Inflation Index in India

What is cost inflation index?

The cost inflation index (CII) are fixed by Government of India in its official Gazette to measure inflation. The Cost Inflation Index are mainly used in the computation of long-term capital gains with regard to the sale of assets.

Thus, indexation helps reflect the actual value of the asset at present market rates, taking into account the erosion of value due to inflation. It may be noted that if the asset was purchased before 1981, the cost inflation index of the year 1981 i.e. 100 must be taken into consideration.

 

How to use Cost Inflation Index (CII) in determination of Purchase Price of Assets sold?

The Formula is as under:

Purchase Price of Asset Sold x [CII for the year the asset was transferred or sold ÷ CII for the year the asset was acquired or bought]

 

How is Cost Inflation Index Useful in Tax Planning?

When Cost Inflation Index used, it helps in tax saving by adjusting the purchasing price of the assets sold with the current market prices.
Cost Inflation Index 2017-18, Cost Inflation Index 2015-16, CII,Cost Inflation Index, capital gain index, cii index, cost inflation index, cost inflation index 2016-17, cost inflation index 2017-18, cost inflation index chart, cost inflation index fy 2017-18, cost inflation index india, cost of indexation for fy 2016-17, cost of inflation index, index cost, indexation chart, indexation table, 2016-17 indexation, capital gain index 2016-17, capital gain index chart 2016-17

Put Your Comment Below