What is Cost Inflation Index (CII)

Cost Inflation Index (CII)

As per provisions of Income Tax Act, for the purpose of Long term capital gains, Indexed cost of acquisition and indexed cost of improvement are deducted from Sale value consideration. Cost Inflation Index is useful in this regard.

Cost Inflation index in relation to previous year means, such index as the Central Government may, with reference to 75% of average rise in CPI (Consumer Price Index) for urban and non urban employees for immediately preceding previous year to such previous year, by notification in official Gazette, specify in this behalf.

NOTIFIED COST INFLATION INDEX UNDER SECTION 48, EXPLANATION (V) – from FINANCIAL YEAR 2001-2002 to FINANCIAL YEAR 2022-23 provided as below:

As per Notification no. So 1790(e)[no. 44/2017 (f. No. 370142/11/2017-tpl)], dated 5-6-2017, following table should be considered for the Cost Inflation Index (CII) :-

Sl. No.Financial YearCost Inflation Index
(1)(2)(3)
12001-02100
22002-03105
32003-04109
42004-05113
52005-06117
62006-07122
72007-08129
82008-09137
92009-10148
102010-11167
112011-12184
122012-13200
132013-14220
142014-15240
152015-16254
162016-17264
172017-18272
182018-19280
192019-20289
202020-21301
212021-22317
222022-23331
CII from FY 2001-02 to FY 2022-23

Post updated with amendment.

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  • CA. Kalpesh Karia

    CA. Kalpesh Karia is a Fellow Chartered Accountant . He founded and developed this blog ' FinanceFriend.in ' in 2012. He regularly posts articles related to finance and taxation on his blog. As the name suggests, he is trying to be a Finance Friend and wants to give back to society what he has learned over the years. He shares knowledge based on his 18 years of experiences in areas like Finance, Accounts, Taxation, Forex & Treasury , Wealth Management & Financial Planning, Costing, SAP and Digital Transformation .

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