9 Mar 2020 Cost Inflation index also called Capital gain index is used to calculate the indexed cost of acquisition for long-term capital gain tax. Read this 13 Sep 2019 Finance Ministry notifies cost inflation index for FY 2019-20 as 289 16-17 Cost Inflation Index out: Start computing your indexed capital gains. 6 Aug 2019 This CII number is important as it will be used to compute inflation adjusted long- term capital gains (LTCG) on assets such as house, gold, debt 6 Aug 2019 This CII number is important as it will be used to compute inflation adjusted long- term capital gains (LTCG) on assets such as house, gold, debt 30 Jun 2018 Illustration: For an asset purchased in 2002 for Rs. 10,000 and sold in 2014, the inflation-indexed cost price will be calculated as: Cost Inflation Index is a measure of inflation, used to calculate long-term capital gains from sale of capital assets. Capital gains is the profit that you make from Tax Helpline. Click to view Tax Helpline. Updated as on 25-01-2020. Cost Inflation Index Back. Date when asset was first held by assessee; Date of transfer
Knowledge of Cost Inflation Index is necessary for computing Long-Term Capital Gains. The Capital Gains will be computed after deducting the indexed cost of acquisition from the sale value. The cost of purchase of the asset will be increased by applying the Cost Inflation Index (CII). Cost Inflation index also called Capital gain index is used to calculate the indexed cost of acquisition for long-term capital gain tax. The indexation table Cost Inflation index also called Capital gain index used to calculate the indexed cost of acquisition for long-term capital gain tax. Indexed Cost of Acquisition=(Rs.50 lakh/117)*272=Rs.1,16,23,931. So the Long Term Capital Gain=Selling Price-Indexed Cost of buying property=Rs.33,76,069. (Note-As per the below Cost of Inflation Index (CII), the CII rate for FY 2017-18 is 272 and for FY 2005-06, it is 117). New cost inflation index (CII) numbers, used for calculating indexed capital gains, have been notified by the Central Board of Direct Taxes (CBDT). These will be applicable for financial year 2017-18 onwards. The government issued a notification dated June 5th, 2017 revising the cost inflation index numbers.
13 Sep 2019 Finance Ministry notifies cost inflation index for FY 2019-20 as 289 16-17 Cost Inflation Index out: Start computing your indexed capital gains. 6 Aug 2019 This CII number is important as it will be used to compute inflation adjusted long- term capital gains (LTCG) on assets such as house, gold, debt 6 Aug 2019 This CII number is important as it will be used to compute inflation adjusted long- term capital gains (LTCG) on assets such as house, gold, debt 30 Jun 2018 Illustration: For an asset purchased in 2002 for Rs. 10,000 and sold in 2014, the inflation-indexed cost price will be calculated as:
12 Mar 2016 From 1965 to 1982 the basic principle was that Capital Gains Tax was The basic principle of indexation is that a deduction is made in the computation in by the percentage increase in the Retail Price Index from the date of 29 Jun 2016 Now get capital gain calculation easily and you can even consult experts Indexed cost: indexation is a Indexation is a technique to adjust tax 11 Sep 2017 A new series of cost inflation index will be applicable from assessment year 2018 -19 to calculate indexation for the purpose of long-term capital 20 Jul 2008 long term capital gains. But its calculation is not very simple – the cost of acquisition has to be indexed using the cost inflation index numbers. Cost Inflation Index (CII) is used to calculate long-term capital gains from sale of capital assets. Learn more about CII calculation, overview, base year, formula. Cost Inflation Index is used for calculating Long term Capital Gain. Every year, Income Tax department notifies Cost Inflation Index. CII is very useful to calculate Long Term Capital Gain Tax. Capital Gain = Sales Consideration – Indexed Cost of Acquisition The Cost Inflation Index is calculated to adjust and match the prices to the inflation rate, and more importantly for calculating the estimated increase in the prices of goods and assets year-by-year due to inflation.
This indexed cost is then used to calculate your long term capital gains and the resultant tax on same. In this post, I will share the complete cost inflation index chart that's updated till AY 2018-19 plus a Capital Gains Tax calculator for you to easily compute your tax liabilities The ministry has set the Cost Inflation Index FY 2019-20 as 289. For the previous FY 2018-19, CII was 280. For the previous FY 2018-19, CII was 280. The rate of inflation for indexation purposes have been specified by the Indian Government for every financial year.