Cost Inflation Index for Capital Gain for FY 2021-22 is 317

The CBDT (Central Board of Direct Taxes) notifies the Cost Inflation Index for Capital Gain every year. The latest Cost inflation index for Financial Year 2021-22 / Assessment Year 2022-23 vide Notification No. 73/2021-Income Tax | Dated: 15th June, 2021 is 317.

What is Cost Inflation Index?

As the name “Cost Inflation Index” suggests it’s an index (or number) which measures the inflation (or price increase) every year. We all experience price rise every year. For e.g. Last year you were paying rent for your house as Rs 20,000 per month. After one year, the landlord asked to increase the rent by 10% and now you pay Rs 22,000 per month. So the price increase or inflation on your rent is 10%. This increase can be termed as “personal rental inflation index”.

Similarly government measures inflation across wide range of goods and services every year known as Inflation Index. The Cost Inflation Index is 75% of this Inflation Index and is notified every year.

How is Cost Inflation Index calculated?

The Cost Inflation Index is calculated every year by Government of India and is 75% of the consumer price index (CPI) for urban non-manual employees in the last year. The idea here is to give partial tax benefit on the price increase of an asset just due to overall inflation.

Download Capital Gains Calculator

You can download free Excel based Capital gains calculator for Property based on new 2001 series CII (Cost Inflation Index). It calculates both Long Term and Short Term capital gains and associated taxes. You need to feed your property sale & purchase date along with values. There is option to include cost of repairs/improvement that you might have incurred during the holding period.

Cost Inflation Index Table

Budget 2017 has changed the base year for cost inflation index (CII) for calculating capital gains from 1981-82 to 2001-02. This would in most cases be beneficial for tax payers.

The table below shows the Cost Inflation Index Table from FY 2001-02 to present financial year.

Sl. No.Financial YearCost Inflation Index
12001-02100
22002-03105
32003-04109
42004-05113
52005-06117
62006-07122
72007-08129
82008-09137
92009-10148
102010-11167
112011-12184
122012-13200
132013-14220
142014-15240
152015-16254
162016-17264
172017-18272
182018-19280
192019-20289
202020-21301
212021-22317
Cost Inflation Index Table
cost inflation index for capital gain
cost inflation index for capital gain

Cost Inflation Index Chart PDF

You can download the Old and New Cost Inflation Index Chart in PDF from the link below

3 thoughts on “Cost Inflation Index for Capital Gain for FY 2021-22 is 317”

  1. Jayarama Gurumurthy

    I bought a plot for rs.6000 plus expenses in 1982 and constructed ground floor at cost of rs.1.50 lacs during 1987 and again construfted first floor for rs.4.00 lacs. During 2008, improvement amount of rs.15 lacs for the house was spent. Now I want to sell that house for 1 crore. I am now retired and drawing pension of rs.6 crores annually. I would like to know the capital gains tax if I account for during thus financial year 20-21 using indexation. Please be guided accordingly. Tnks. Gurumurthy J

  2. Me and my wife jointly bought a Flat in 1991 Nov for 4.48 lakhs and sold in sep 2018 for 40 lakhs. Based on Indexation what is the capital gain tax . As the Indexation starts in 2001 and the Flat was purchased in 1991 , will charted engineer certificate on capital gains vs indexation, which is a better method

  3. I would appreciate if you could kindly let me know that as per the CII of both, Year 2001 & Year 2018 what would be the cost price of a commercial property CURRENTLY (office in NEHRU PLACE) if it was bought on outright purchase (DDA LEASEHOLD AGAINST BUILDER TRANSFER) for Rs.1 LAKH IN THE YEAR , 1981 (NOVEMBER, 1981)
    Would it be somewhere between 10 to 15 lacs ?
    If you could kindly illustrate the entire calculations based on the purchase price of 1 lakh.
    Actually on what amount of CAPITAL GAIN would I be liable to pay INCOME TAX after deducting the purchase price as per the enhanced figure calculated with the formula of CII.
    Thanks & Regards,
    SHAMMI DHINGRA

Leave a Comment

Your email address will not be published.