The CBDT has notified vide its Notification No 39/2023 dtd 12.06.2023 that the Cost Inflation Index (CII) for the year 2023-24 be 348.
What is Cost Inflation Index?
The Cost Inflation Index (CII) is a crucial parameter used in the Indian tax system to adjust the purchase cost of assets and investments for inflation. It serves as a measure to calculate the indexed cost of acquiring an asset over time, which is essential for determining the capital gains tax liability. The CII is updated annually by the Central Board of Direct Taxes (CBDT) and reflects the changes in the average inflation rate during the relevant financial year. By applying the CII to the original purchase price of an asset, taxpayers can account for inflationary factors, thereby reducing their capital gains tax burden and ensuring a fair assessment of taxable gains.
Please find below the Cost Inflation Index Table year wise from the base year 2001-02
|Sl No||Financial Year||Cost Inflation Index (CII)|
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