Cost inflation index for financial year 2012-13 is 852
Income tax department has notified cost inflation index for the financial year 2012-13. Income tax department has issued a notification dated 17 September 2012 about the cost inflation index for financial year 2012-13.
Where to Use CII in Calculation of Long Term Capital Gains (LTCG)
LTCG = Full value of consideration received or accruing – (indexed cost of acquisition + indexed cost of improvement + cost of transfer)
- Indexed cost of acquisition =Cost of acquisition x CII of year of transfer /CII of year of acquisition
- Indexed cost of improvement =Cost of improvement x CII of year of transfer /CII of year of improvement
CII = Cost Inflation Index (Please see chart given below)
Tax liability on LTCG to be taken at 20%.
If total income other than LTCG is less than zero slab,LTCG over the zero slab only attracts tax at 20%.