Listtable of cii 100 for fy 2001 02 and 272 for fy 201718. By looking at the change in the consumer price index we can see that an item that cost an average of 9. Cost inflation index cii for py 201920 ay 202021 notified by cbdt at 289 base year 200102 in the case of transfer of short term capital. Notified cost inflation index under section 48, explanation v as per. Budget 2017 has changed the base year of indexation from 1981 to 2001. Methods of calculation of indexed cost of acquisition ll focus tax study ll different methods of calculation of indexed cost of acquisition as per income tax act 1961 related searches st. Latest revision o f wpi has been done by shifting base year from 199394. Sep, 2019 the cost inflation index cii for the financial year fy 201920 has been notified by the ministry of finance. From 2000 until 2019 the consumer price index rate fluctuated between a high of 4. During the last two economic expansions, march 1991march 2001 and november 2001 december 2007, the inflation rate remained low by the standards of previous decades, and has. The assessees can now exercise option to use fair market value fmv indexed cost of acquisition for arriving at the figure of ltcg, regarding assets acquired prior to 1 apr. Price indexes base year 2005 monthly singlefamily houses under construction.
To find out how to use the chart to easily calculate the capital gains applicable on property sold in india. Complete cost inflation index cii table from 2001 till 2018. This data represents changes in the prices of all goods and services purchased for consumption by urban households. The cpi inflation calculator uses the consumer price index for all urban consumers cpiu u.
Whilst consumerproducer inflation indices reflect average change in the cost of goods typically bought by consumersproducers, the gdp deflator is not representative of any. It is the monthly measure of construction cost movement for the indian construction industry released by cidc. Cost inflation index is a measure of inflation, used to calculate longterm capital gains from sale of capital assets. Cbdt notifies cost inflation indexes with base year as. New cost inflation index cii numbers, used for calculating indexed capital gains, have been notified by the central board of direct taxes cbdt. Cbdt notifies cost inflation indexes with base year as 2001. Cost inflation index cii chart for long term capital gains. You may be aware that the base year was changed from the earlier fy 198182 to fy 2001 02. Shifting base year from 1981 to 2001 for computation of capital gains. By doing this capital appreciation during 19812001 has been effectively exempted.
Me and my wife jointly bought a flat in 1991 nov for 4. The base year has been shifted from fy 198182 to fy 2001 02. Notified cost inflation index under section 48, explanation v as per notification no. These include food, shelter, furniture, clothing, transportation, and recreation. Cost inflation index fy 201819 used for ltcg calculation notified. It is worth noting that the consumer price index cpi in 1941 was virtually at the same level as in 1807. The impact of the first two announcements is quite intuitive. Cost inflation index for ay 201920 with downloadable pdf. The entire process where the capital assets cost price is adjusted with the effect of inflation using the. Cost inflation index how to calculate indexed cost of. Long term capital gains computation with base year 2001. The inflation rate is the percentage change in the. Apr 10, 2020 the commonly quoted inflation rate of say 3% is actually the change in the consumer price index from a year earlier.
Amendment to section 55 from ay 201819 by budget 201718. So currently, 200102 will be taken as the base year for calculation. The average annual inflation rate calculated from the consumer price index of industrial workers with 2001 as the base year peaked in 200910 at 12. Base year for indexation changed from 1981 to 2001. Cost inflation index ay 201819 base year 200102 notified by cbdt. Methods of calculation of indexed cost of acquisition ll. In a notification dated september 12, the finance ministry stated that cii for fy 201920 has been set as 289. By doing this capital appreciation during 1981 2001 has been effectively exempted. B the base year has been changed from 1981 to 2001, but the old index for. The inflation calculator uses monthly consumer price index cpi data from 1914 to the present to show changes in the cost of a fixed basket of consumer purchases. You may be aware that the base year was changed from the earlier fy 198182 to fy 200102.
The new cost inflation index for financial year 201718 is 272. Ministry of finance department of revenue central board of direct texes. Cost inflation index ay 201819 base year 200102 tablelist. If the asset was acquired after 01041981, the purchase price has to be indexed with cost inflation index computed with a base as 100 on above date. Cost inflation index for fy 1718 base year 200102 for. Cost inflation index chart table with base year 2001 02 applicable for fy 2001 02 to fy 201819. Construction cost index is an indicator of the average cost movement over time of a fixed basket of representative goods and services related to construction industry. Cost inflation index calculates the estimated rise in the cost of goods and assets year by year as a result of. In budget 2017, finance minister arun jaitley announced the shifting of base year from 1981 to 2001. Budget 2017 has changed the base year for cost inflation index cii for calculating capital gains from 198182 to 200102. Cost inflation index meaning and index from financial year 1981.
Indexed cost of acquisition cost of acquisition cost of the inflation index cii for the year in which the asset was sold or transferred. At the instants of the national building organization nbo, govt. Sep 25, 2019 if the purchase was made after april 2001, then there would be no difference in the amount of tax to be paid on longterm capital gains. Cost of inflation index fy 201920 ay 202021 for capital. This would in most cases be beneficial for tax payers. Every financial year, cbdt central board of direct taxes will notify cii value for that year after taking inflation into account. The government issued a notification dated june 5th, 2017 revising the cost inflation index numbers. Income tax shift in the base year from 1981 to 2001 with revised cost inflation index for computing capital gainnotification no. Cost inflation index chart india complete chart till 2020. This means that if the capital asset was bought before 2001 then the fair market value has to be calculated as on 200102, and after that, the number can be adjusted with cost inflation index. On 5th june, 2017, the government changed the base year of cost inflation index from 1981 to 2001. Sep, 2019 cost inflation index is an index started in fy 198182 with 100 as the base.
The current series of wholesale price index has 200405 as the base year and 676 items for calculating index. Budget 20172018 resulted in a change of base year for cost inflation index cfi from april 1, 1981 to april 1, 2001. These will be applicable for financial year 201718 onwards. Cbdt notified the cost of inflation index fy 201920 ay 202021 for capital gain on 12th september 2019. Cost inflation index cii is used to calculate longterm. The cost of inflation index cii for the year in which the asset was first held by the assessee or fy 200102, whichever is later. Below is the cost inflation index table with data till 201718. This means that if the capital asset was bought before 2001 then the fair market value has to be calculated as on 2001 02, and after that, the number can be adjusted with cost inflation index. This notification of cii index shall come into force with effect from 1 st day of april, 2018 and shall accordingly apply to the assessment year 201819 and subsequent years. How to adjust for inflation statistical literacy guide. Cost inflation index for the financial years taking the base. In budget 2017, the government proposed to change the base year to calculate the indexation benefit from 1981 to 2001.
Cost inflation indexhow to calculate indexed cost of acquisition. Also, if you hold the immovable property for 2 years and then sell it, the gains from the sale of land or building will qualify as longterm capital gains. Description 33kb quarterly multifamily housing units under construction. It is important to save these numbers as you will be. Cost inflation index base shifted from 1981 to 2001. Cost inflation index base shifted from 1981 to 2001 for computation of capital gains. In exercise of the powers conferred by clause v of the explanation to section 48 of the incometax act, 1961 43 of 1961, the central government hereby specifies the cost inflation index as mentioned in column 3 of the table for the financial years mentioned in the corresponding entry in column 2 of the said table, namely.
Hmt gdp deflator figures year index inflation rate. Price data directorate of economics and statistics. If the asset was acquired before 01041981, we could use the fair market value as on that date or the actual cost and claim a deduction for the. Dated 1292019, following table should be used for the cost inflation index. Cost inflation index chart table with base year 200102 applicable for fy 200102 to fy 201819. Jun 07, 2017 cost inflation index with base year 200102 for the capital gain in financial year 201718. Listtable of cii 100 for fy 200102 and 272 for fy 201718. The prebudget rule would be to inflate the purchase price using the cost inflation index with 1981 as the base year. Jun 30, 2018 new cost inflation index cii numbers, used for calculating indexed capital gains, have been notified by the central board of direct taxes cbdt. Latest revision o f wpi has been done by shifting base year from 199394 to 200405 on the. Cost inflation index calculates the estimated rise in the cost of goods and assets yearbyyear as a result of.
Why is the base year of cost inflation index changed to 2001. Now from fy 201718, the base year of cost inflation index has been changed to 2001. Cost inflation index for fy 201920 ay 202021 taxguru. The price of a product increase overtime, and this brings down the purchasing power of money. Cbdt notifies new cost inflation index for capital gains changing the base year from 1981 to 2001. Aug 21, 2018 cii index cost inflation index base year 2001 02. Cpi inflation calculator bureau of labor statistics. Cost inflation index for ay 202021, cost inflation fy 201920. The formula for calculating the new purchase price using cost of inflation index is as below. The cii for base year 2001 02 is taken as 100 and cii of fy 201920 is 289. Historical current index historical current index historical current index cost index based on cost index based on cost index based on year jan. So currently, 2001 02 will be taken as the base year for calculation. Excel 140kb description 40kb quarterly singlefamily houses sold.
Now, with the proposed changed, the base year will become 2001. This number is important as it is used to arrive at the inflation adjusted. The cost inflation index cii for base year 200102 is taken as 100 and cii of fy 201920 ay 202021 is 289. Cost inflation indexes notified with base year as 200102. This year, the cbdt has also changed the base year from 1981 to 2001. One of them is that base year of cost inflation index has been shifted from 1981 to 2001. Cost inflation index for capital gain base changed in.
This notification shall come into force with effect f. The city cost indexes for canada can be used to convert u. The indexation benefit is only applicable for long term capital gains i. Cost inflation index chart table for fy 20182019 ay 2019.
This means that the utilitybased calculation sees a rise in the cost of living of only 10. In exercise of the powers conferred by clause v of the explanation to section 48 of the incometax act, 1961 43 of 1961, the central government hereby specifies the cost inflation index for the financial years taking the base year as 2001 02. The commonly quoted inflation rate of say 3% is actually the change in the consumer price index from a year earlier. Construction cost indices central electricity authority. During the last two economic expansions, march 1991march 2001 and november 2001december 2007, the inflation rate remained low by the standards of previous decades, and has. Financial year cost inflation index 1 2 3 1 200102 100 2 200203 105. Remember, in budget 2017, then finance minister arun jaitley announced the shifting of base year from 1981 to 2001. The cii for base year 200102 is taken as 100 and cii of fy 201920 is 289.
Cost inflation index 2001 series released taxup india. New cost inflation index base year 20012002 as per budget. Currently, for cost inflation index, the base year is 1981. The cost inflation index cii for the financial year fy 201920 has been notified by the ministry of finance. In order to revise the base year for computation of capital gains, section 55 of the income tax act, 1961 was amended vide finance act, 2017 so as to provide that the cost of acquisition of an asset acquired before 01. In this post, lets try to under the impact of change in base year for indexation from 1981 to 2001. Price of basket giving same utility price of consumption basket in the base year.
Table a1 see cost of clean water index annex provides a breakdown of nacwa index values and service charges back to 1985, the base year for the index. Cost inflation index cii chart for long term capital. Jun 14, 2018 the base year has been shifted from fy 198182 to fy 2001 02. Cost inflation index are notified by cbdt every year and till date. Nov, 2017 now from fy 201718, the base year of cost inflation index has been changed to 2001. In exercise of the powers conferred by clause v of the explanation to section 48 of the incometax act, 1961 43 of 1961, the central government hereby specifies the cost inflation index for the financial years taking the base year as 200102.
This notification shall come into force with effect from 1st day of april, 2018 and shall accordingly apply to the assessment year 201819. Jan 01, 2020 budget 2017 has changed the base year for cost inflation index cii for calculating capital gains from 198182 to 2001 02. Cost inflation index with base year 200102 for the capital gain in financial year 201718. Capital gains is the profit that you make from selling an asset, which can be real estate, jewellery, stock, etc. This number is important as it is used to arrive at the inflation adjusted purchasing price of assets and.
Cost inflation index fy 201718 is 272 ay 201718 new cost of inflation index cii come into force w. Jan 18, 2018 methods of calculation of indexed cost of acquisition ll focus tax study ll different methods of calculation of indexed cost of acquisition as per income tax act 1961 related searches 1. Sep, 2019 cbdt notified the cost of inflation index fy 201920 ay 202021 for capital gain on 12th september 2019. The base year has been shifted from fy 198182 to fy 200102. Description 33kb contains monthly price indexes in a vertical format.
Jun 06, 2017 cost inflation index ay 201819 base year 2001 02 notified by cbdt. Cost inflation index is an index started in fy 198182 with 100 as the base. If the asset was acquired after 01042001, the purchase price has to be indexed with cost inflation index computed with a base as 100 on above date. How change in base year for indexation from 1981 to 2001. Inflation chart below presents a national snapshot of the increase in service charges, as compared to inflation, since 2000.