The Central Board of Direct Taxes (CBDT) has notified the Cost Inflation Index
(CII) for Financial Year 2015-16.
The Cost Inflation Index (CII) for the Financial Year 2015-16 (applicable
for the Assessment Year 2016-17) has been announced by CBDT
Cost Inflation is required to calculate Long term capital gain
under Income Tax Act
Long Term Capital Gains (LTCGs) 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 Income tax Slab,LTCG
over the zero slab only attracts tax at 20%.
Complete Notification is Given Below.
SECTION 48, EXPLANATION (v) OF THE INCOME-TAX ACT, 1961 -
CAPITAL GAINS - COMPUTATION OF - NOTIFIED COST INFLATION INDEX FOR FINANCIAL
YEAR 2015-16
In exercise of the powers conferred by clause (v) of the
Explanation to section 48 of the Income-tax Act, 1961 (42 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, Extraordinary, vide
number S.O. 709(E), dated the 20th August, 1998, namely:—
2. In the said notification, in the Table, after serial number
34 and the entries relating thereto, the following serial number and entries
shall be inserted, namely:—
Financial Year
|
Cost Inflation Index
|
|
2014-15
|
1081
|
Cost inflation Index for Financial Year 1981-82 to 2015-16 is given below for your ready reference.
The following chart showing 35 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
|
|||
34 2014-15 1025
35 2015-16 1081
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