The time has come again to get ready for filing your Income Tax returns. If you sold any property which is to be taxed under Long Term Capital Gains, you must be looking for Cost Inflation Index to compute the LTCG.

Cost Inflation Index is applicable from the year 1981-1982.

### How Cost Inflation Index works?

Cost Inflation Index discounts the increase in sale consideration while computing your long term capital gains. This is a prescribed method by government to allow the increase in cost of living.

### How Long Term Capital Gain is computed after considering the Cost Inflation Index?

Long term capital gain or LTCG is computed in following manner by considering the cost inflation index.

Sale Consideration: Rs. 1000

Purchase cost (After indexation benefit): 900

Long Term Capital Gain : 100

Suppose if the original purchase price was 500 and land was purchased in 1995, than you have to arrive at the cost price by using following formula:

(Cost of Land/Index price during the year of purchase)*Cost inflation index in the year of sale

### Cost Inflation Index for the years 1981, 1982, 1983, 1984, 1985, 1986, 1987, 1988, 1989, 1990, 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015

 FINANCIALYEAR COST INFLATION INDEX 1981-1982 100 1982-1983 109 1983-1984 116 1984-1985 125 1985-1986 133 1986-1987 140 1987-1988 150 1988-1989 161 1989-1990 172 1990-1991 182 1991-1992 199 1992-1993 223 1993-1994 244 1994-1995 259 1995-1996 281 1996-1997 305 1997-1998 331 1998-1999 351 1999-2000 389 2000-2001 406 2001-2002 426 2002-2003 447 2003-2004 463 2004-2005 480 2005-2006 497 2006-2007 519 2007-2008 551 2008-2009 582 2009-2010 632 2010-2011 711 2011-12 785 2012-13 852 2013-14 939 2014-15 1024

### Cost Inflation Index Chart for the years from 1981 to 2015

Posted 2 years, 10 months ago by Rahul Rai

Thank you very much Rahul.

This was a much needed information. This table becomes a handy tool while filing the income tax returns or preparing the income tax returns.

Posted 2 years, 10 months ago by CA Pulkit Sharma

I have a small Doubt in Capital Gain Taxations:

I Purchased a property in April 2005 and Sold in March 2015

Now While selling a case has been filed be the Seller's Son.

I am ready to Pay him say 5 Lakh but he is not ready to take and he wants 10 Lakh

This will be my Cost which is 5 Lakh fixec and after the decision of Case.

Can i claim the Cost of 5 Lakh for Calculation of LTCG

Posted 2 years, 10 months ago by SANJAY KUMAR GANNA

Whether 88 Rebate of Rs. 2,000 is Applicable for Computation of Short term capital gain?

I.e. I do not have any income other that STCG on sale of Property of Rs. 4,60,000

Posted 2 years, 10 months ago by SANJAY KUMAR GANNA

I sold a house that I bought a four years ago and made capital gains (FY14-15). I am a senior citizen and even with the gains my total income for FY14-15 will be below the maximum amount which will not be chargeable to income tax (i.e. Rs.2,50,000) Am I still required to pay tax on the above capital gains?

Posted 2 years, 10 months ago by SANJAY KUMAR GANNA