FINANCIAL YEAR 2013-14 : COST INFLATION INDEX 939

SECTION 48, EXPLANATION (v) OF INDIAN INCOME - TAX ACT, 1961 - CAPITAL GAINS - COMPUTATION OF - NOTIFIED COST INFLATION INDEX FOR FINANCIAL YEAR  (FY) 2013-14

NOTIFICATION NO. 40 / 2013 [F. NO. 142 / 7 / 2013-TPL]/SO 1464 (E), DATED 6-6-2013

In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes, published in the Gazette of India, number S.O. 709 (E), dated the 20th August, 1998, namely:

In the said notification, in the Table, after serial number 32 and the entries relating thereto, the following serial number and entries shall be inserted, namely :-

           

Financial Year   Cost Inflation Index

           

2013-14             939

The following chart showing 33 years Cost of Inflection Index:

Cost Inflation Index (CII)  Chart
Sl. No.	Financial Year	CII= Cost Inflation Index	Sl. No.	Financial Year	CII= 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

Long Term Capital Gains (LTCG) is computed as below :

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

Where, 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

CII = Cost Inflation Index (Please see chart given below)

Tax liability on LTCG to be taken at 20 %.

If total income other than LTCG is less than zero slab, LTCG over the zero slab only attracts tax at 20%.

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