Cost Inflation Index FY 2021-22 / AY 2022-23

The price of inflation index (CII) for the monetary 12 months 2021-22 has been notified by the Ministry of Finance. The ministry has set the Value Inflation Index FY 202-22 as 317. For the earlier FY 2020-21, CII worth was 301.

The speed of inflation for indexation functions is specified by the Indian Authorities for each monetary 12 months.

The bottom 12 months is taken into account as 2001-02.

The bottom 12 months was shifted from 1981 to 2001 in Price range 2017.

This CII quantity is necessary as it’s used to reach on the inflation adjusted buying value of property (listed value of acquisition) which have been bought or deliberate to be bought in FY 2021-22.

The listed value of acquisition is used within the calculation of Lengthy-term capital features (LTCG) or Lengthy Time period Capital Losses (LTCL).

Kindly observe that CII is used to calculate inflation-adjusted value just for these property the place inflation-adjusted (indexation profit) is allowed. For instance, within the circumstances of debt mutual funds, real-estate property, gold and so forth.,

The CII worth can’t be used to reach at LTCG/LTCL on fairness mutual funds.  Index profit is not allowed in case of bonds or debentures besides capital indexation bonds or sovereign gold bonds issued by the RBI.

Newest Value Inflation Index FY 2021-22 | CII Chart AY 2022-23

Under is the desk of Value Inflation Index numbers, as stipulated by the Earnings Tax Division. You may take values from the desk to compute the listed or inflation-adjusted value of acquisition.  

Monetary 12 months Evaluation 12 months Value of Inflation Index (CII)
2001-02 (Base 12 months) 2002-03 100
2002-03 2003-04 105
2003-04 2004-05 109
2004-05 2005-06 113
2005-06 2006-07 117
2006-07 2007-08 122
2007-08 2008-09 129
2008-09 2009-10 137
2009-10 2010-11 148
2010-11 2011-12 167
2011-12 2012-13 184
2012-13 2013-14 200
2013-14 2014-15 220
2014-15 2015-16 240
2015-16 2016-17 254
2016-17 2017-18 264
2017-18 2018-19 272
2018-19 2019-20 280
2019-20 2020-21 289
2020-21 2021-22 301
2021-22 2022-23 317
Value of Inflation Index Desk for FY 2021-22 | AY 2022-23

Easy methods to Calculate the Listed value of buy or listed value of Acquisition (ICoA)?

The listed value is calculated with the assistance of a desk of value inflation index as given above.

Divide the associated fee at which you bought the Property/Funding by the index as on the date of the acquisition. Multiply this by the index as on the date of sale.

ICoA = Authentic value of acquisition * (CII of the 12 months of sale/CII of 12 months of buy)

Let’s say you may have invested in a debt fund in August 2014. Your funding quantity was Rs 2,00,000 (20,000 models @ Rs 10 every). Seven years later, you redeemed your investments in June 2021, at a price of Rs 3,00,000 ( 20,000 models @ Rs 15 every).

Therefore, while you bought your investments, the worth of your investments was Rs 3,00,000. Your funding made capital features value Rs 1,00,000. Nonetheless, you needn’t pay tax on this whole quantity of Rs 1,00,000.

All you could do is apply the components.

  • Value of acquisition is Rs 2 lakh.
  • CII quantity for buy 12 months (2014-15) was 240.
  • CII throughout sale 12 months (FY 2021-22) is 317.

This may imply that your listed value value of acquisition could be –> (2,00,000 * 317/240) = Rs 2,64,167.

As once more, your Long run capital features would come right down to Rs. 35,833 (Rs 3,00,000- Rs.2,64,167), you can be taxed 20% of this quantity (as in comparison with Rs 1,00,000 with out indexation) which is able to once more, tremendously cut back your tax obligations.

Thus, with Indexation, you possibly can take pleasure in the advantages of your individual investments with out shedding an extreme quantity of taxes.

CII Index Worth for FY 2021-22 / AY 2022-23 | Notification

Under is the notification issued by the Ministry of Finance on Value Inflation Index for FY 2021-22.

CII Index value 317 Cost Inflation index FY 2021-22 AY 2022-23 Notification
Value Inflation index FY 2021-22 / AY 2022-23 | Notification

Proceed studying:

  1. What’s Unfavourable Actual Curiosity Price? | How Can Curiosity Charges Be Unfavourable?
  2. What’s Indexation of Mutual Funds and why is it necessary for you?
  3. Checklist of all Common Funding Choices in India – Options & Snapshot
  4. Easy methods to save Capital Positive aspects Tax on Sale of Land / Home Property?

(Publish first revealed on 27-June-2021)



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