Capital Gains Income Tax-Cost Inflation Index from 1981 to 2015-16 - Professionals - Taxation - TIK Share
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Capital Gains Income Tax-Cost Inflation Index from 1981 to 2015-16


Rahul Rai

2015-03-19

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

 Capital Gains Income Tax-Cost Inflation Index from 1981 to 2015-16

CA Pulkit Sharma

2015-03-19

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.

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SANJAY KUMAR GANNA

2015-03-20

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

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SANJAY KUMAR GANNA

2015-03-20

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

Reply

SANJAY KUMAR GANNA

2015-03-20

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?

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