Cost Inflation Index for the Year 2014-15

The Central Board of Direct Taxes (CBDT) has revised a value for the cost inflation index for 2014-15 vide Notification No. 31/2014, Dated: June 11, 2014.  The Cost Inflation Index helps reduce the inflationary gains, and the index is useful for income-tax assesses in the computation of tax on long-term capital gains.



 Cost Inflation Index-



Sl. No.
Financial Year
Cost Inflation Index
Sl. No.
Financial Year
Cost Inflation Index
1
1981-82
100
17
1997-98
331
2
1982-83
109
18
1998-99
351
3
1983-84
116
19
1999-00
389
4
1984-85
125
20
2000-01
406
5
1985-86
133
21
2001-02
426
6
1986-87
140
22
2002-03
447
7
1987-88
150
23
2003-04
463
8
1988-89
161
24
2004-05
480
9
1989-90
172
25
2005-06
497
10
1990-91
182
26
2006-07
519
11
1991-92
199
27
2007-08
551
12
1992-93
223
28
2008-09
582
13
1993-94
244
29
2009-10
632
14
1994-95
259
30
2010-11
711
15
1995-96
281
31
2011-12
785
16
1996-97
305
32
2012-13
852
33
2013-14
939
34
2014-15
1024

Long Term Capital Gains  computation :

LTCG = Full value of consideration received or accruing - (indexed cost of acquisition + indexed cost of improvement +cost of transfer)

Indexed cost of acquisition
 =Cost of acquisition x CII of year of transfer /CII of year of acquisition

Indexed cost of improvement
 =Cost of improvement x CII of year of transfer /CII of year of improvement

Tax liability on LTCG with Indexation is to be taken at 20%