Cost inflation index for FY 2021-22 used for LTCG calculation notified by income tax department

• June 17, 2021
• CA Chandan Agarwal's Office

At the time of income tax returns filing next year, this CII number will be helpful to you to ascertain the long-term capital gains on which you are liable to pay taxes. As per the notification, CII for FY 2021-22 shall come into effect from April 1, 2022 and will be applicable to assessment year 2022-23 and subsequent assessment years.

The Central Board of Direct Taxes (CBDT) has notified the cost inflation index (CII) for FY 2021-22 as 317 via a notification dated June 15, 2021. For the previous year, i.e., FY 2020-21, CII was notified as 301.

CII is used to calculate the inflation adjusted cost price of an asset. The inflation adjusted price then is used to arrive at long-term capital gains or long-term losses. The CII number is used to calculate inflation adjusted price of assets such as land, building, house, gol ..