{"id":23835,"date":"2024-05-26T06:18:11","date_gmt":"2024-05-26T00:48:11","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=23835"},"modified":"2025-04-07T05:16:36","modified_gmt":"2025-04-06T23:46:36","slug":"cost-inflation-index","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/cost-inflation-index\/","title":{"rendered":"Cost Inflation Index"},"content":{"rendered":"<h2><strong>About Cost Inflation Index<\/strong><\/h2>\n<ul>\n<li>The CII number is used to adjust the <strong>purchase price of assets<\/strong> on the <strong>basis of inflation.<\/strong><\/li>\n<li>CII is notified under the <strong>Income-tax Act, 1961 every year.<\/strong><\/li>\n<li>The CII number helps an individual to ascertain the <strong>inflation-adjusted current price<\/strong> of an asset.<\/li>\n<li>This helps in <strong>calculating capital gains<\/strong> from a transfer or sale of capital assets after taking inflation into account.\n<ul>\n<li><strong>Capital gain<\/strong> refers to the profit acquired from the sale\/transfer of any capital assets, including land, property, stocks, shares, trademarks, patents, etc.\u00a0<\/li>\n<\/ul>\n<\/li>\n<li>Normally, an asset is required to be retained for more than 36 months (24 months for immovable property and unlisted shares, 12 months for listed securities) to qualify as &#8216;long-term capital gains&#8217;.<\/li>\n<li>It helps taxpayers offset the impact of inflation as the difference between the purchase and sale price could be substantial due to rising prices.<\/li>\n<li>The application of the Cost Inflation Index for capital gain adjusts the purchase price of assets based on their sale price, resulting in smaller earnings and a lower tax amount.<\/li>\n<li>From FY 2023-24, the indexation benefit on long-term capital gains from <strong>non-equity mutual fund schemes has been removed.<\/strong><\/li>\n<li>A taxpayer will continue to use the CII number to calculate long-term <strong>capital gains from house property, land, and building in the event of a sale.<\/strong><\/li>\n<\/ul>\n<hr \/>\n<h3>Q1: What is Capital Gains Tax (CGT)?<\/h3>\n<p>The term capital gains can be defined as profits accumulated from the sale of any capital asset. Land, buildings, house property, vehicles, patents, trademarks, leasehold rights, machinery, and jewellery are a few examples of capital assets.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/economictimes.indiatimes.com\/news\/economy\/policy\/income-tax-department-notifies-cost-inflation-index-for-current-fiscal\/articleshow\/110419852.cms?from=mdr\" target=\"_blank\" rel=\"nofollow noopener\"><u>Income Tax department notifies cost inflation index for current fiscal<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cost Inflation Index number is used to adjust the purchase price of assets on the basis of inflation.<\/p>\n","protected":false},"author":5,"featured_media":23836,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-23835","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/23835","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=23835"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/23835\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/23836"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=23835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=23835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=23835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}