Cost Inflation Index Chart Table for FY 2021-22 (AY 2022-23) + Old Table 2001 – Calculator For Income Tax Capital Gain Purpose

30 July 2021 by wealth18.com

How to Calculate capital Gains using CII

Cost Inflation Index is used for calculating Long term Capital Gain. Every year, Income Tax department notifies Cost Inflation Index. CII is very useful to calculate Long Term Capital Gain Tax.

Capital Gain = Sales Consideration – Indexed Cost of Acquisition

Indexed Cost of Acquisition = Actual Purchase Price * (Index in year of Sale / Index in Year of Purchase)

If the property is purchased before 2001, then you need to get the Fair market value of the property in 2001 and the use that for Indexed cost. In such cases,

Indexed Cost = Fair Market value in 2001 * (Index in year of Sale / Base Index i.e. 100)

In the post (further below), I have explained how can you get the fair market value of the property in 2001 (in case the property is acquired before 2001).

New CII Index Numbers: (applicable from 2017) – Base year is now changed from 1981 to 2001

Budget 2017 has changed the base year of Indexation from 1981 to 2001. Read details & impact on Investors & capital gain.

The cost inflation index notified are as under :

YEAR	CII	YEAR	CII
2001-02	100	2012-13	200
2002-03	105	2013-14	220
2003-04	109	2014-15	240
2004-05	113	2015-16	254
2005-06	117	2016-17	264
2006-07	122	2017-18	272
2007-08	129	2018-19	280
2008-09	137	2019-2020	289
2009-2010	148	2020-2021	301
2010-11	167	2021-2022	317
2011-12	184

You can also read about the tax saving options under 80C (link) and under 80D to 80U (link)

From April 2018, tax rules have changed and a penalty of upto Rs 10000 will be levied if the return is not filed on time. Also, the ITR revision time limit is also changed from 2 years to 1 year. See details

See my other post on how you can file your ITR online for free on Income Tax website. Also, you need to make sure that you check your Form 26AS online to check TDS amounts.

Example 1 : How to Calculate Indexed Cost of Acquisition Asset

Purchased House on 01-Jul-2004 = Rs 20 Lakh

Sold House on 01-May-2018 = Rs 75 Lakh

Indexed Cost of Property	Actual Purchase Price * (Index in year of Sale / Index in Year of Purchase)
	Rs 20 Lakh * (280 / 113) = Rs 49.55 lakhs
Sale Amount	75 Lakh
Capital Gain	75 Lakh – Rs 49.55 lakh = Rs 25.44 lakhs

Example 2 :

Purchased House on 01-Jul-1999 = Rs 25 Lakh

Sold House on 01-May-2018 = Rs 75 Lakh

As the house is purchased before the new base year (2001), you will need to get the Fair Value of property as on 1st April 2001.
You can then use that value to calculate the indexed cost

Indexed Cost: = Fair Value (in 2001) * (280/100)

Sale Amount= Rs 75 lakh

Capital Gain = Rs 75 lakh – Indexed cost (as above)

How to calculate Fair Market Value of the Property

There is no fixed formula to calculate the Fair Market Value of the property. However, you can use following methods to calculate:

Check average sales price of similar properties in your area that was sold in 2001 – It may be difficult to know or find

Check the circle rates, if available: Circle rates are fixed by the state government or the local development authority and normally used for stamp duty and registration charges. These are usually lower than the normal market value.

Check real estate indices: Indices such as the National Housing Bank’s (NHB’s) Residex, and two indices of the Reserve Bank of India (RBI)—Housing Price Index (HPI) and Residential Property Price Index (RPPI) can give an idea about the prevailing pricing trends in various cities

Registered Valuer (Recommended) – You can take help of Government-approved valuers follow a standard process for the valuation and provide a detailed report. Fee and charges that a valuer can charge are also prescribed under the Act, and depend on the value of an asset. For instance,
- for first the Rs5 lakh of asset value, fee would be 0.50% of the value.
- For next Rs10 lakh, it would be 0.20%,
- for next Rs40 lakh 0.10% and 0.05% of the value thereafter

So, for e.g. for a property valued at Rs 70 lakhs, the value may charge approx Rs 10000.

How to save Capital Gains Tax

Read my other post – How to Save Capital gains Tax on Sale of Property

Old CII Index Numbers:

Financial Year	Cost Inflation Index	Financial Year	Cost Inflation Index
1981-82	100	1999-2000	389
1982-83	109	2000-01	406
1983-84	116	2001-02	426
1984-85	125	2002-03	447
1985-86	133
1986-87	140	2003-04	463
1987-88	150	2004-05	480
1988-89	161	2005-06	497
1989-90	172	2006-07	519
1990-91	182	2007-08	551
1991-92	199	2008-2009	582
1992-93	223	2009-10	632
1993-94	244	2010-2011	711
1994-95	259	2011-2012	785
1995-96	281	2012-2013	852
1996-97	305	2013-2014	939
1997-98	331	2014-2015	1024
1998-99	351	2015-2016	1081
		2016-2017	1125
		2017-2018	to be announced
		2018-2019	280