New Cost Inflation Index for AY 2018-19/ FY 2017-18 at 272 Notified by CBDT (Base Year 2001-02)

CBDT Notification on Cost Inflation Index Applicable from Financial Year/ Previous Year 2017-18 (Assessment Year 2018-19) with Base Year 2001-02

The CBDT has notified the “Cost Inflation Index” Applicable from FY/ PY 2017-18 (AY 2018-19) onwards, with Base Year shifted to 2001-02, in line with the amendments made in Budget 2017. Cost Inflation Index as per amended provisions has been fixed as 272 for FY 2017-18/ AY 2018-19, with cost inflation index for base year (FY 2001-02) at 100.

It may be noted that Budget 2017/ Finance Act 2017 has proposed amendments in provisions relating to indexation for the purpose of determining long term capital gains. Base year has been shifted from FY 2001-02 to FY 2001-02. In respect of assets acquired prior to 1 Apr. 2001, the assessee now has the option to use FMV/ Indexed Cost of Acquisition for arriving at the figure of long term capital gains. It’s likely that investors in property will stand to gain in most of the cases with shifting of the base year for the purpose of indexation.

Cost Inflation Index from FY 2017-18/ AY 2018-19: CBDT Notification No. 44/2017 dt. 5 June 2017

S.O. 1790(E).- In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the Cost Inflation Index as mentioned in column (3) of the Table for the Financial Years mentioned in the corresponding entry in column (2) of the said Table, namely:—

SI. No.Financial YearCost Inflation Index
(1)(2)(3)
12001-02100
22002-03105
32003-04109
42004-05113
52005-06117
62006-07122
72007-08129
82008-09137
92009-10148
102010-11167
112011-12184
122012-13200
132013-14220
142014-15240
152015-16254
162016-17264
172017-18272

2. This notification shall come into force with effect from 1st day of April, 2018 and shall accordingly apply to the assessment year 2018-19 and subsequent years.

 

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