CBDT (Central Board of Direct Taxes) notified Cost Inflation Index (CII) applicable from Financial Year 2017-18 (Assessment Year 2018-19) with Base Year 2001-02. This is in line with the amendments made in Budget 2017. Cost Inflation Index as per amended provisions has been fixed as 272 for FY 2017-18/ AY 2018-19, with CII for base year (FY 2001-02) at 100.
This might benefit some tax payers who hold capital asset (mostly immovable property) prior to April 01, 2001 because shifting of base year for indexation from 1981 to 2001, the capital appreciation for these many years will get exempted. This means, if any asset acquired before April 1, 2001, the fair market value (FMV) as on April 1, 2001 or actual cost will be considered for the purpose of arriving indexed cost of acquisition for arriving at the figure of long term capital gains.
Below table is the records for CII since FY 2001-02 till date with percentage increments in each financial year of index than its previous financial year.
|Cost Inflation Index Notified by the Govt.|
|Financial Year||(CII)||Increased||Financial Year||(CII)||Increased|