Cost Inflation Index Chart Table for FY 2018-2019 (AY 2019-2020) + Old Table 2001 – Calculator For Income Tax Capital Gain Purpose

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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 Cost Inflation Index (CII) Chart / table for 2019-2020

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
2009-2010 148
2010-11 167
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

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
If you have any query related to Calculating Capital Gains , please use the comments box below.
 

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