What is capital gain index?
CII is used to calculate the inflation adjusted cost price of an asset. The inflation adjusted price then is used to arrive at long-term capital gains or long-term losses. The CII number is used to calculate inflation adjusted price of assets such as land, building, house, gold jewellery, debt mutual funds etc.
What is the cost inflation index for 2021 22?
Latest Cost Inflation Index FY 2021-22 | CII Chart AY 2022-23
| Financial Year | Assessment Year | Cost of Inflation Index (CII) |
|---|---|---|
| 2018-19 | 2019-20 | 280 |
| 2019-20 | 2020-21 | 289 |
| 2020-21 | 2021-22 | 301 |
| 2021-22 | 2022-23 | 317 |
What is the base year for capital gain?
2001
Currently, the base year is fixed at 2001 and CII for 2001 starts at 100. The cost of acquisition of an asset acquired before 1 April 2001 shall be allowed to be taken as FMV as on 1st April, 2001 or the actual cost as chosen by the taxpayer.
What is the indexation rate for 2020 21?
Cost Inflation Index Table upto Financial Year 2020-21
| Sl. No. | Financial Year | Cost Inflation Index |
|---|---|---|
| 17 | 2017-18 | 272 |
| 18 | 2018-19 | 280 |
| 19 | 2019-20 | 289 |
| 20 | 2020-21 | 301 |
How is long term capital gain index calculated?
Long-term capital gain index calculation is done by using the latest Cost inflation index prepared by the Government of India. It helps to calculate the index cost for capital gain. In other words – To calculate the long-term capital gains, individuals need to find out the indexed cost of an asset in question.
Is there capital gains tax on cost inflation index?
The government charges tax on our sale of the asset and they do not wish to let go of the capital gain. Hence, the government charges capital gains tax. Cost inflation index India is an index issued by the Central Board of Direct Taxes and the figures keep changing every financial year. What is cost inflation index?
What is the indexed cost of acquisition for capital gain?
If Mr X bought a housing property on August 7, 2004 for Rs. 30 Lakh and sold it on April 6, 2018, for RS. 85 Lakh, the indexed cost of acquisition would be – (Cost of acquisition x CII at the time of sale)/ CII at the time of purchase Therefore, the capital gain would be Rs. (85 – 74.33) Lakh = Rs. 10.67 Lakh
What is the long term capital gains of Rs 80 lakh?
And the long-term capital gains would be Rs 21.51, that is Rs 80 lakh minus Rs 58.49 lakh. Cost Inflation Index:- Cost inflation index (CII) as notified by Central Government alongwith analysis of the same is as under: