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.
The CII figure may be taken as a proxy for inflation. To understand how CII models inflation, have a look at how the value of ₹1,000 has changed over the years as per CII changes.
What is the latest value of the Cost Inflation Index (CII)?
The Cost Inflation Index (CII) for FY 2024-25 (AY 2025-26) is 363. The index has increased by 4.31%.
Did you know that we have a private Facebook group which you can join for free and ask your own questions? Please click the button below to join.
What is the value of ₹1000 today as per the latest CII value?
The value of something that cost ₹1000 in FY 2001-02 would be around ₹ 3630 today.
Since the index started in FY 2001-02, we can think that the value of the Rupee has steadily decreased as per the change in the CII index. If the value of something was ₹100 when CII was 200, then that item should cost around ₹150 when CII rises to 300 (150 = 100 * 300/200). This is of course an approximation. The actual increase would depend on the product and the time period considered.
As the above table shows, it is easy to calculate the indexed purchase price. In the table above, an asset purchased in FY 2008-09 (CII = 137) and being sold in FY 2017-18 (CII = 272), will have an indexed purchase price of ₹198.54.
What's next? You can join the Arthgyaan WhatsApp community
You can stay updated on our latest content and learn about our webinars.
Our community is fully private so that no one, other than the admin, can see your name or number. Also, we will not spam you.
To understand how this article can help you:
If you have a comment or question about this article
The following button will open a form with the link of this page populated for context:
If you liked this article, please leave us a rating
The following button will take you to Trustpilot:
Discover an article from the archives
Previous and next articles:
Market Data
What are the Latest Coupon Rates for Government Bonds in India?
This article gives you the latest government bond coupon rates so that you can maximize your return from these bonds.
Published: 25 May 2024
6 MIN READ
Mutual FundsFixed Deposit
Arbitrage Funds vs Fixed Deposits in India: Which is Better?
This article highlights the main differences between arbitrage funds and fixed deposits in India to help investors make the best choice for their financial needs.
Published: 26 May 2024
2 MIN READ
Latest articles:
Review
NSE launches the Nifty Top 10 Equal Weight Index. Should you invest?
This article discusses the Nifty Top 10 Equal Weight Index covering the 10 largest mega-cap stocks in India and whether these stocks are suitable for investors.
Published: 26 June 2024
6 MIN READ
Tax
A Quick Primer on Dividends and their Taxation for Residents and NRIs
This article gives a high level overview on dividends and related taxtion rules for both residents and NRIs.
Disclaimer: Content on this site is for educational purpose only and is not financial advice. Nothing on this site should be construed as an offer or recommendation to buy/sell any financial product or service. Please consult a registered investment advisor before making any investments.
This post titled What is the latest Cost Inflation Index (CII) value in 2024? first appeared on 25 May 2024 at https://arthgyaan.com
Tax
