How to calculate cost inflation index for fy 2020-18

Cost Inflation Index (CII) is an Index which finds its utility in the income tax act at the time of computation of Long Term Capital Gains to be disclosed in the Income Tax Return.The Cost Inflation Index is issued by the Central Board of Direct Taxes (CBDT) and the figures that have been issued by the CBDT till date have been disclosed herewith for your Ready Reference.

The Income Tax department recognizes this and issues an annual Cost Inflation Index (CII) that allows you to index your cost of acquisition to take inflation into account. This indexed cost is then used to calculate your long term capital gains and the resultant tax on same. The cost inflation index (CII) for the financial year (FY) 2019-20 has been notified by the Ministry of Finance. In a notification dated September 12, the finance ministry stated that CII for FY 2019-20 has been set as 289. For the previous financial year CII was 280. Since long-term capital assets are held for longer periods, inflation also factors in while computing tax on long-term capital gains. Cost Inflation Index (CII) Cost inflation Index is a term that comes into play when we talk about long-term capital gains. This index is fixed and is declared every year by the government. Article discusses Meaning of Cost Inflation Index (CII) which is used for Computation of Long Term Capital Gain. Cost Inflation index are Notified by CBDT every year and till date CBDT has notified Cost Inflation Index for the Financial Year 1981-82 to Financial year 2019-20.Cost Inflation index are used for computing indexed cost of acquisition. The formula for calculating the Inflation Rate is relatively simple. Every month various organizations survey prices and generate different indices that we base our estimates from. Usually, we average the various index values to find an average inflation percentage. Some of these indices are the Turner Building Index (TBI), Municipal Cost Index Cost Inflation Index (CII) is an Index which finds its utility in the income tax act at the time of computation of Long Term Capital Gains to be disclosed in the Income Tax Return.The Cost Inflation Index is issued by the Central Board of Direct Taxes (CBDT) and the figures that have been issued by the CBDT till date have been disclosed herewith for your Ready Reference.

Latest Cost of Inflation Index (CII) Chart - FY 2017-18.

Below is the complete list of Cost of Inflation Index FY 2019-20 AY 2020-21 from new base year FY 2001-02 to FY 2019-20. This notification will come into force with effect from 1st day of April 2019 and will accordingly apply to the Assessment Year 2019-20 and subsequent years. To assess the indexed cost, the seller needs to multiply the property's cost of acquisition with the cost inflation index, as notified by the tax authorities for the year of transfer. This figure then has to be divided by the cost inflation index of the year of purchase. You can calculate the future cost of goods by using the Consumer Price Index as a measure for gauging inflationary forces over the short term. Finding the Right Inflation Rate The Consumer Price Index (CPI) is the most commonly used index for tracking inflation. 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.

The Cost Inflation Index Figure is announced for each Financial Year and the Cost Inflation Index Figures as released by CBDT for the previous years has been 

23 Feb 2017 New Indian Income Tax Cost Inflation Index for FY 2017-18 or AY 2018-19 for Calculating Long Term Capital Gains Tax. 12 Jun 2014 CBDT has notified the Cost Inflation Index(CII) for Financial Year 2014-15. Cost Inflation is required to calculate Long term capital gain under  Cost inflation index is an index started in FY 1981-82 with 100 as the base. On 5th June, 2017, the government changed the base year of cost inflation index from 1981 to 2001. Also, if you hold the immovable property for 2 years and then sell it, the gains from the sale of land or building will qualify as long-term capital gains. Cost Inflation Index for AY 2020-21, Cost Inflation Index for FY 2019-20 for Long Term. Capital gain is the profit you make on selling an asset. It can be stock, real estate, mutual funds, jewellery etc. If you are selling an asset after one year from the date of its purchase, the profit becomes a short term capital gain. Now from FY 2017-18, the base year of cost inflation index has been changed to 2001. This means that if the capital asset was bought before 2001 then the Fair market value has to be calculated as on 2001-02, and after that, the number can be adjusted with cost inflation index. Below is the cost inflation index table with data till 2017-18 Below is the complete list of Cost of Inflation Index FY 2019-20 AY 2020-21 from new base year FY 2001-02 to FY 2019-20. This notification will come into force with effect from 1st day of April 2019 and will accordingly apply to the Assessment Year 2019-20 and subsequent years. To assess the indexed cost, the seller needs to multiply the property's cost of acquisition with the cost inflation index, as notified by the tax authorities for the year of transfer. This figure then has to be divided by the cost inflation index of the year of purchase.

The Cost Inflation Index Figure is announced for each Financial Year and the Cost Inflation Index Figures as released by CBDT for the previous years has been 

13 Sep 2019 How do you calculate the indexed cost of purchase or indexed cost of acquisition (ICoA)?. The indexed cost is calculated with the help of a table  13 Sep 2019 Cost inflation index has been revised for financial year 2017-18 and subsequent years. CII is used while calculating long-term capital gains. 27 Jul 2019 Taxation of Long Term Capital Gains from A.Y. 2019-20 Now, let us have a detailed study on how to calculate LTCG. long term capital gain exceeding Rs. 1 lakhs will be taxed at the rate of 10% (without indexation). How will cost of acquisition for assets acquired on or before 31/03/2018 be determined?

The Income Tax department recognizes this and issues an annual Cost Inflation Index (CII) that allows you to index your cost of acquisition to take inflation into account. This indexed cost is then used to calculate your long term capital gains and the resultant tax on same.

16 Sep 2019 2001, the assessee now has the option to use FMV/ Indexed Cost of Acquisition for arriving at the figure of long term capital gains. It's likely that  15 Sep 2019 Formula for computing indexed cost is (Index for the year of sale/ Index in the year of acquisition) x cost. For example, if a property purchased in  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   13 Sep 2019 What is the CII or Cost of Inflation Index FY 2019-20 AY 2020-21? How to calculate the capital gain tax using indexation benefit? What is the 

13 Sep 2019 Cost inflation index has been revised for financial year 2017-18 and subsequent years. CII is used while calculating long-term capital gains. 27 Jul 2019 Taxation of Long Term Capital Gains from A.Y. 2019-20 Now, let us have a detailed study on how to calculate LTCG. long term capital gain exceeding Rs. 1 lakhs will be taxed at the rate of 10% (without indexation). How will cost of acquisition for assets acquired on or before 31/03/2018 be determined? The Cost Inflation Index Figure is announced for each Financial Year and the Cost Inflation Index Figures as released by CBDT for the previous years has been  9 Nov 2017 Cost Inflation Index is announced by the central government for every financial year, after referring to the CPI (Consumer Price Index) for the