The Central Board of Direct Taxes (CBDT) yesterday issued the Cost Inflation Index for the year 2018-19.
Cost Inflation Index (CII) is a measure of inflation which is used for computing long-term capital gains on sale of capital assets. It comes under Section 48 of the Income-Tax Act. Indexation helps reflect the actual value of the asset at present market rates, taking into account the erosion of value due to inflation.
The Finance minister, during his Budget Speech on Feb-01-2017, revised the Cost Inflation Index used by the Indian Income Tax Department to calculate Long Term Capital Gains Tax with Indexation benefit. The revision was shift in base year from 1981 to 2001.
The present Notification is applicable w.e.f 01.04.2018 and is applicable to the assessment year 2018-19 and to the subsequent years.
Read the full text of the Notification below.
