COST INFLATION INDEX
The cost inflation index (CII) for the Financial Year 2020-21 has been notified by the Central Board of Direct Taxes (CBDT) vide notification no. 32/2020 dated 12th June, 2020. This notification shall come into force with effect from 1st April, 2021 and shall accordingly apply to the assessment year 2021-22 and subsequent years.
Cost Inflation Index is very significant as it is used to arrive at the inflation adjusted purchasing price of assets and thereby long-term capital gains (LTCG). It is very important to compute the long-term capital gains/long-term capital loss.
The Central Board of Direct Taxes (CBDT) has notified Cost Inflation Index for the Financial Year-2020-21 as “301”.
Here is the table showing all the Cost Inflation Index (CII) numbers since 2001-02:-
|Sr. No.||Financial Year||Cost Inflation Index (CII)|
To get official notification please click here-Notification No.-32/2020
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