Cost Inflation Index changed


Cost Inflation Index changed

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Meaning of Cost Inflation Index changed [Clause (v) of Explanation to section 48]

 Meaning of Cost Inflation Index changed [Clause (v) of Explanation to section 48] [W.e.f. A.Y. 2016-17]

 


The existing provisions contained in section 48 prescribe the mode of computation of income chargeable under the head "Capital gains". Clause (v) of the Explanation to the said section defines the term "Cost Inflation Index" (CII) which in relation to a previous year means such index as may be notified by the Government having regard to 75% of average rise in the Consumer Price Index (CPI) for urban non- manual employees (UNME) for the immediately preceding previous year to such previous year.

 

The release of CPI for UNME has been discontinued. Accordingly, the Act has amended the said clause (v) of the Explanation to section 48 to provide that "Cost Inflation Index" in relation to a previous year means such index as may be notified by the Central Government having regard to 75% of average rise in the Consumer Price Index (Urban) for the immediately preceding previous year to such previous year. back

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