How to use the Cost Inflation index (CII): latest value and historical rates
29 Jun 2022 - Contact Sayan Sircar
4 mins read
This article shows the latest as well CII value and shows you how to use it for calculating capital gains tax.

Table of Contents
- Understanding the Cost Inflation Index
- What is the latest value of the Cost Inflation Index (CII)?
- Historical Cost Inflation Index (CII) table
- Using the CII for calculating capital gains
- List of assets on which CII is applicable
Understanding the Cost Inflation Index
The Cost Inflation Index (CII) is a number published by the Central Board of Direct Taxes (CBDT) for every financial year that is used to calculate capital gains on selling a capital asset like real estate, mutual funds, stocks or bonds.
The CII figure is published at the beginning of every financial year. It is used to rebase the purchase price of a capital asset, utilising the concept of indexation.
Recent articles:What is the latest value of the Cost Inflation Index (CII)?
The Cost Inflation Index (CII) for FY 2022-23 (AY 2023-24) is 331
Historical Cost Inflation Index (CII) table
Serial # | Financial Year | CII |
---|---|---|
1 | 2001-02 | 100 |
2 | 2002-03 | 105 |
3 | 2003-04 | 109 |
4 | 2004-05 | 113 |
5 | 2005-06 | 117 |
6 | 2006-07 | 122 |
7 | 2007-08 | 129 |
8 | 2008-09 | 137 |
9 | 2009-10 | 148 |
10 | 2010-11 | 167 |
11 | 2011-12 | 184 |
12 | 2012-13 | 200 |
13 | 2013-14 | 220 |
14 | 2014-15 | 240 |
15 | 2015-16 | 254 |
16 | 2016-17 | 264 |
17 | 2017-18 | 272 |
18 | 2018-19 | 280 |
19 | 2019-20 | 289 |
20 | 2020-21 | 301 |
21 | 2021-22 | 317 |
22 | 2022-23 | 331 |
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Using the CII for calculating capital gains
The second column of the table has the financial year, which runs from 1st April to 31st March. The sale or purchase date of the asset is to be checked against this table, and the appropriate CII is to be picked up. For assets purchased before 1st April 2001, the seller has to use a government-approved valuer to determine the fair market price of the asset on 1st April 2001. In 2017, the government changed the base year for CII from 1981 to 2001.
We define the following terms:
- purchase price or book value (BV): the original price paid at the time of purchase
- sale price or market value (MV): the sale price of the asset
- the cost of improvement of the asset (E): for house property, for example, this will be maintenance activities
- CII in the financial year of purchase (CII0)
- CII in the financial year of sale (CII1)
Indexed purchase price = BV * CII1 / CII0
Capital Gains = MV - E - Indexed purchase price
Since CII1 > CII0, Indexed purchase price > BV, meaning that the capital gains, and hence the capital gains tax you pay, is lower due to indexation.
List of assets on which CII is applicable
Here is an indicative list of assets for whose sale you need to use CII to calculate the capital gains tax:
- debt mutual funds
- mutual funds where the percentage holding of Indian stocks is less than 65%. This category includes hybrid funds as well, where the 65% rule is applicable
- mutual funds investing in international stocks
- real estate
- gold and gold jewellery
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