The latestCost Inflation Index (CII)for theFinancial Year FY 2024-25 and Accounting Year (AY 2025-26)has been declared and is363. More detailshere. The CII is used to notify the rate of inflation for indexation purposes in India every financial year. And for this current CIIC series, the...
It explains Cost Inflation Index, how it is calculated, how it is used for indexed cost of acquisition, the asset class it applies to & tax liability.
To summarize, thepurchase price of debt fund (investment price) is multiplied by the CII for the year in which the sale is made and divided by the CII for the year in which the purchase was made. The indexed price so arrived at is used to calculate the capital gains on which LTCG tax...