The Cost Inflation Index for the year 2023 has been kept at 348 for the CII FY 2023-24 this year by the Income Tax. This is used to calculate long term capital gain. It was 331 for the financial year 2022-23.
The Cost Inflation Index (CII) for the financial year 2023-24 has been released by the Income Tax Department. It is used to calculate long term capital gain on account of sale of fixed assets, securities and jewellery.
Let us tell you, Cost Inflation Index (CII) is used to calculate the profit on the part of the taxpayer from the sale of capital assets. In this, inflation is also adjusted while calculating the profit.
CBDT issued notice
The notice issued by the Central Board of Direct Taxes (CBDT) states that the CII for the financial year 2023-23 will be 348. Generally, CII is announced by the Income Tax Department in the month of June every year. The CII for the previous financial year was 331, while that for the financial year 2021-22 was 317.
Taxpayers will get relief
This year the cost inflation index has been released three months in advance. This will provide relief to the taxpayers and they will be able to calculate long term capital gain easily and quickly for the first quarter of the current financial year.
CII is issued annually
The cost inflation index is released every year under the Income Tax Act, 1961. Long term capital gain on sale of any asset is considered if the taxpayer has held it for at least 36 months, although this limit is 24 months for fixed assets and 12 months for listed securities.
Taxpayer benefits from CII
With the passage of time, the prices of properties increase and with the increase in inflation, the purchasing power also decreases. With the help of CII, inflation is adjusted from the profit made after the sale of the property to the taxpayer. Due to this, the taxpayer has to pay less tax.
