Cost of inflation index – 2009-10


Cost Inflation Index for the purpose of computing Long Term Capital Gain

In indian income tax, for the purpose of calculating long term capital gain, index are used to work out the present value of money spent on acquiring the said asset in the previous years. For example, if we purchase a flat for 5 lakhs in 81-82 and sell it now for 50 lakhs in 2009-10, the indexed cost of value of the flat for the purpose of cost of purchase will be Rs. 5 lakhs x 632/100 = 31.6 lakhs using the index against the said financial year i.e. 2009-10. The sale vaue is Rs.50 lakhs and hence capital gain will be Rs.50 lakhs — 31.6 lakhs = 18.4 lakhs. Only on this capital gain tax has to be paid. Or new house /flat has to be purchased in order to avoid capital gain tax subject to certain conditions which are available in some other topics in this site.

FINANCIAL YEAR COST INFLATION INDEX FINANCIAL YEAR COST INFLATION INDEX

1981-82 100
1982-83 109
1983-84 116
1984-85 125
1985-86 133
1986-87 140
1987-88 150
1988-89 161
1989-90 172
1990-91 182
1991-92 199
1992-93 223
1993-94 244
1994-95 259
1995-96 281
1996-97 305
1997-98 331
1998-99 351
1999-00 389
2000-01 406
2001-02 426
2002-03 447
2003-04 463
2004-05 480
2005-06 497
2006-07 519
2007-08 551
2008-09 582
2009-10 632

C . R. Venkata Ramani

(AICWA)

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