CBDT has declared awaited Cost Inflation Index for Financial Year 2012-13. The CII is used in claculation of Long Term Capital Gain on Sale of Capital Consideration. If you have invest more than one year Short-Term Capital Assets then you in need of Cost Inflation Index Chart for computing long-term capital gain, cost of acquisition and cost of improvement may be indexed, if required, on the basis of following cost inflation index notified by the Central Government for this purpose. The assets having more than 3 years period consider as Long Term Capital Gain.
Calculation of Long Term Capital Gains (LTCG))
Long Term Capital Gains 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 slab,LTCG over the zero slab only attracts tax at 20%.
The following chart showing 32 years Cost of Inflection Index:
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 slab,LTCG over the zero slab only attracts tax at 20%.
The following chart showing 32 years Cost of Inflection Index:
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| Cost Inflation Index 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 |
