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Price Inflation Index FY 2021-22


The price of inflation index (CII) for the monetary yr 2021-22 has been notified by the Ministry of Finance. The ministry has set the Price Inflation Index FY 202-22 as 317. For the earlier FY 2020-21, CII worth was 301.

The speed of inflation for indexation functions is specified by the Indian Authorities for each monetary yr.

The bottom yr is taken into account as 2001-02.

The bottom yr was shifted from 1981 to 2001 in Finances 2017.

This CII quantity is necessary as it’s used to reach on the inflation adjusted buying worth of belongings (listed value of acquisition) which have been offered or deliberate to be offered in FY 2021-22.

The listed value of acquisition is used within the calculation of Lengthy-term capital positive aspects (LTCG) or Lengthy Time period Capital Losses (LTCL).

Kindly observe that CII is used to calculate inflation-adjusted value just for these belongings the place inflation-adjusted (indexation profit) is allowed. For instance, within the circumstances of debt mutual funds, real-estate property, gold and so forth.,

The CII worth can’t be used to reach at LTCG/LTCL on fairness mutual funds.  Index profit is not allowed in case of bonds or debentures besides capital indexation bonds or sovereign gold bonds issued by the RBI.

Newest Price Inflation Index FY 2021-22 | CII Chart AY 2022-23

Under is the desk of Price Inflation Index numbers, as stipulated by the Revenue Tax Division. You possibly can take values from the desk to compute the listed or inflation-adjusted value of acquisition.  

Monetary Yr Evaluation Yr Price of Inflation Index (CII)
2001-02 (Base yr) 2002-03 100
2002-03 2003-04 105
2003-04 2004-05 109
2004-05 2005-06 113
2005-06 2006-07 117
2006-07 2007-08 122
2007-08 2008-09 129
2008-09 2009-10 137
2009-10 2010-11 148
2010-11 2011-12 167
2011-12 2012-13 184
2012-13 2013-14 200
2013-14 2014-15 220
2014-15 2015-16 240
2015-16 2016-17 254
2016-17 2017-18 264
2017-18 2018-19 272
2018-19 2019-20 280
2019-20 2020-21 289
2020-21 2021-22 301
2021-22 2022-23 317
Price of Inflation Index Desk for FY 2021-22 | AY 2022-23

Methods to Calculate the Listed value of buy or listed value of Acquisition (ICoA)?

The listed value is calculated with the assistance of a desk of value inflation index as given above.

Divide the fee at which you bought the Property/Funding by the index as on the date of the acquisition. Multiply this by the index as on the date of sale.

ICoA = Unique value of acquisition * (CII of the yr of sale/CII of yr of buy)

Let’s say you’ve gotten invested in a debt fund in August 2014. Your funding quantity was Rs 2,00,000 (20,000 models @ Rs 10 every). Seven years later, you redeemed your investments in June 2021, at a worth of Rs 3,00,000 ( 20,000 models @ Rs 15 every).

Therefore, while you offered your investments, the worth of your investments was Rs 3,00,000. Your funding made capital positive aspects price Rs 1,00,000. Nonetheless, you needn’t pay tax on this whole quantity of Rs 1,00,000.

All it is advisable to do is apply the system.

  • Price of acquisition is Rs 2 lakh.
  • CII quantity for buy yr (2014-15) was 240.
  • CII throughout sale yr (FY 2021-22) is 317.

This could imply that your listed value worth of acquisition could be –> (2,00,000 * 317/240) = Rs 2,64,167.

As once more, your Long run capital positive aspects would come right down to Rs. 35,833 (Rs 3,00,000- Rs.2,64,167), you’ll be taxed 20% of this quantity (as in comparison with Rs 1,00,000 with out indexation) which is able to once more, vastly scale back your tax obligations.

Thus, with Indexation, you possibly can get pleasure from the advantages of your individual investments with out dropping an extreme quantity of taxes.

CII Index Worth for FY 2021-22 / AY 2022-23 | Notification

Under is the notification issued by the Ministry of Finance on Price Inflation Index for FY 2021-22.

CII Index value 317 Cost Inflation index FY 2021-22 AY 2022-23 Notification
Price Inflation index FY 2021-22 / AY 2022-23 | Notification

Proceed studying:

  1. What’s Adverse Actual Curiosity Charge? | How Can Curiosity Charges Be Adverse?
  2. What’s Indexation of Mutual Funds and why is it necessary for you?
  3. Listing of all Fashionable Funding Choices in India – Options & Snapshot
  4. Methods to save Capital Features Tax on Sale of Land / Home Property?

(Put up first revealed on 27-June-2021)



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