Oct01
2019CBDT has announced, in a recent notification, the Cost Inflation Index for the Financial Year 2019-20 vide Notification No. 63/2019 dated 12th September, 2019. Cost Inflation Index for Financial Year 2019-20 is declared 289. Refer to the notification below:
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 63/2019- Income Tax
New Delhi, the 12th September, 2019
(INCOME-TAX)
S.O. 3266(E).—In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), Central Board of Direct Taxes, published in the Official Gazette, vide number S.O. 2413(E), dated the 13th June, 2018, namely:‑
2. In the said notification, in the Table, after serial number 18 and the entries relating thereto, the following serial number and entries, shall be inserted, namely:
Sr. No. | Financial Year | Cost Inflation Index |
(1) | (2) | (3) |
“19 | 2019-20 | 289” |
3. This notification shall come into force with effect from the 1st day of April, 2020 and shall accordingly apply to the Assessment Year 2020-2021 and subsequent years.
[Notification No. 63/2019/F. No. 370142/11/2019-TPL]
PRAVIN RAWAL, Director
(Tax Policy and Legislation)
What is Cost Inflation Index?
Let us take this opportunity to understand more about cost inflation index.
Determination of Cost Inflation Index:
Cost Inflation Index Table:
Financial Year | Cost Inflation Index (CII) |
2001-02 (Base Year) | 100 |
2002-03 | 105 |
2003-04 | 109 |
2004-05 | 113 |
2005-06 | 117 |
2006-07 | 122 |
2007-08 | 129 |
2008-09 | 137 |
2009-10 | 148 |
2010-11 | 167 |
2011-12 | 148 |
2012-13 | 200 |
2013-14 | 220 |
2014-15 | 240 |
2015-16 | 254 |
2016-17 | 264 |
2017-18 | 272 |
2018-19 | 280 |
2019-20 | 289 |
Concept of Base Year:
How Indexed Cost of Acquisition is determined?
Indexed Cost of Acquisition can be calculated based on below formula:
Indexed Cost of Acquisition = (Cost Inflation Index for the year of sale X Cost of Acquisition) / CII for the year of purchase or CII for the year 2001-02, whichever is later. |
How Indexed Cost of Improvement is determined?
Indexed Cost of Improvement can be calculated based on below formula:
Indexed Cost of Improvement = (Cost Inflation Index for the year of sale X Cost of Improvement) / CII for the year in which improvement was done. |