TIOL-DDT 1637 · Friday, 24 June 2011 · story 2 of 6

Cost Inflation Index notified for FY 2011-12

CENTRAL Government has notified the Cost Inflation Index for FY 2011-2012 as 785.

It may be noted that vide Notification No. S.O. 709(E) dated August 20, 1998 as amended, issued in terms of Explanation (v) of section 48 of IT Act, 1961, Central Government has been notifying the Cost Inflation Indices for respective financial years from time to time with 1981-82 as the base year with CII as 100.

In terms of Explanation (v) of section 48 of IT Act, 1961 ‘Cost Inflation Index' in relation to a previous year, means such Index as the Central Government may, having regard to seventy-five per cent of average rise in the Consumer Price Index for urban non-manual employees for the immediately preceding previous year to such previous year, by notification in the Official Gazette, specify, in this behalf.

CII is applied for computing long term ‘capital gains' on sale of assets in terms of section 48 of IT Act.

The CII from 1981-82:

Sr.

No

Financial Year

CII

Sr.No

Financial Year

CII

Sr.No

Financial Year

CII

1

1981-82

100

10

1990-91

182

19

1999-00

389

2

1982-83

109

11

1991-92

199

20

2000-01

406

3

1983-84

116

12

1992-93

223

21

2001-02

426

4

1984-85

125

13

1993-94

244

22

2002-03

447

5

1985-86

133

14

1994-95

259

23

2003-04

463

6

1986-87

140

15

1995-96

281

24

2004-05

480

7

1987-88

150

16

1996-97

305

25

2005- 06

497

8

1988-89

161

17

1997-98

331

26

2006-07

519

9

1989-90

172

18

1998-99

351

27

2007-08

551

28

2008-09

582

29

2009-10

632

30

2010-11

711

31

2011-12

785

CBDT NOTIFICATION NO. 35/2011, Dated: June 23, 2011