NEW DELHI: The source of revenue tax division has notified the Cost Inflation Index for the present fiscal starting April 2023, for calculating long-term capital features bobbing up from sale of immovable belongings, securities and jewelry.
The Cost Inflation Index (CII) is utilized by taxpayers to compute features bobbing up out of sale of capital belongings after adjusting inflation.
The Cost Inflation Index for FY 2023-24 related to AY 2024-25 stood at 348, as according to a notification of the Central Board of Direct Taxes (cbdt,
Usually, the source of revenue tax division notifies CII within the month of June.
The CII quantity for ultimate fiscal was once 331 and for 2021-22 monetary 12 months it was once 317.
AMRG & Associates Senior Partner Rajat Mohan stated the CII would assist taxpayers to compute long-term capital features tax enabling them to remit advance tax on time.
“This year’s cost of inflation index is notified 3 months earlier by the tax department as compared to last fiscal year. Taxpayers can now precisely and accurately compute tax on long-term gains in the first quarter of FY 2023-24 and pay the necessary advance tax,” Mohan added.
CII or Cost Inflation Index is notified beneath the Income-tax Act, 1961 yearly. It is popularly used to calculate “indexed cost of acquisition” whilst calculating capital features on the time of sale of any capital asset.
Normally, an asset is needed to be retained for greater than 36 months (24 months for immovable belongings and unlisted stocks, twelve months for indexed securities) to qualify as ‘long-term capital features’.
Since costs of products building up over the years leading to a fall within the buying energy, the CII is used to reach on the inflation adjusted buying value of belongings so to compute taxable long-term capital features (LTCG).
The Cost Inflation Index (CII) is utilized by taxpayers to compute features bobbing up out of sale of capital belongings after adjusting inflation.
The Cost Inflation Index for FY 2023-24 related to AY 2024-25 stood at 348, as according to a notification of the Central Board of Direct Taxes (cbdt,
Usually, the source of revenue tax division notifies CII within the month of June.
The CII quantity for ultimate fiscal was once 331 and for 2021-22 monetary 12 months it was once 317.
AMRG & Associates Senior Partner Rajat Mohan stated the CII would assist taxpayers to compute long-term capital features tax enabling them to remit advance tax on time.
“This year’s cost of inflation index is notified 3 months earlier by the tax department as compared to last fiscal year. Taxpayers can now precisely and accurately compute tax on long-term gains in the first quarter of FY 2023-24 and pay the necessary advance tax,” Mohan added.
CII or Cost Inflation Index is notified beneath the Income-tax Act, 1961 yearly. It is popularly used to calculate “indexed cost of acquisition” whilst calculating capital features on the time of sale of any capital asset.
Normally, an asset is needed to be retained for greater than 36 months (24 months for immovable belongings and unlisted stocks, twelve months for indexed securities) to qualify as ‘long-term capital features’.
Since costs of products building up over the years leading to a fall within the buying energy, the CII is used to reach on the inflation adjusted buying value of belongings so to compute taxable long-term capital features (LTCG).