Cost Inflation Index CII for FY 2024-25 is 363

Introduction

The Cost Inflation Index (CII) is a crucial factor in calculating long-term capital gains from assets. The Central Board of Direct Taxes (CBDT) recently announced the CII for the financial year (FY) 2024-25.

CII for FY 2024-25

The CII for FY 2024-25 has been set at 363. This index is used to adjust the cost of acquisition of an asset for inflation, which is essential for determining the taxable capital gains.

Impact on Capital Gains Calculations

The CII plays a significant role in reducing the tax liability on long-term capital gains. By adjusting the cost of acquisition for inflation, the taxable capital gains are reduced, resulting in lower tax liability.

Availability of CII Table

The complete table of CII figures for the financial years 1981-82 to 2024-25 is available online. This table provides a comprehensive reference for calculating indexation benefits for capital gains tax purposes.

Conclusion

The Cost Inflation Index (CII) is an important tool for taxpayers in calculating long-term capital gains. The CII for FY 2024-25 is 363, and it plays a vital role in reducing tax liability. By utilizing this index, taxpayers can ensure that their capital gains calculations are accurate and compliant with the tax laws.