Cost Inflation Index : Current Fiscal Year
The Income Tax Department has notified the Cost Inflation Index for the current fiscal beginning April 2023.
- The Cost Inflation Index number for the current fiscal year 2023-24 is 348 as per a notification of the Central Board of Direct Taxes (CBDT).
- Cost Inflation Index is notified under the Income-tax Act, 1961 every year since 2001 in the month of June.
- But this year’s CII is notified 3 months earlier as compared to last fiscal year.
- Taxpayers will need this CII number at the time of filing income tax return (ITR) next year i.e., AY 2024-25.
Cost Inflation Index (CII):
- CII number is used to adjust the purchase price of assets on the basis of inflation.
- The CII number helps an individual to ascertain the inflation-adjusted current price of an asset.
- This helps in calculating capital gains from a transfer or sale of capital assets after taking inflation into account.
