Cost Inflation Index (CII) for Financial Year 2023-24

CBDT has notified the Income Tax Cost Inflation Index for the Financial Year 2023-24 (Assessment Year 2024-25) vide Notification No. 39/2023, dated 12th June 2022, at 348.

The Cost Inflation Index is used to calculate the inflation-adjusted cost of asset acquisition for the computation of Long-Term Capital Gains (LTCG) on assets. Indexation helps reduce tax liabilities on the same.

You can read more about Cost Inflation Index (CII) and Current Cost Inflation Index here: https://taxninja.in/blog/cost-inflation-index-and-current-cost-inflation-index

MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 12th June, 2023

Income-Tax

S.O. 2751(E).- In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), Central Board of Direct Taxes, published in the Gazette of India, Extraordinary, vide number S.O. 1790(E), dated the 5th June, 2017, namely:-

2. In the said notification, in the Table, after serial number 22, the following serial number and entries relating thereto, shall be inserted, namely:-

3. This notification shall come into force with effect from the 1st day of April, 2024 and shall, accordingly, apply to the assessment year 2024-25 and subsequent assessment years.

Note:- The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), vide number S.O. 1790(E), dated the 5th June, 2017 and last amended by the notification number S.O 1692(E), dated the 10th April, 2023.

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