COST INFLATION INDEX
- The Central Board of Direct Taxes (CBDT), declared the Cost Inflation Index (CII) value for Financial Year (FY) 2022-23. The number rose to 331, up from 317 in FY2021-22.
- CII values reflect the average change in the prices of goods and assets year-on-year due to inflation or deflation.
- When you sell a capital market asset or even property, you have to pay capital gains tax. This is the tax on the difference between sale price and the cost price. Typically, if you hold an asset for a very long time, the asset’s value (and therefore, its sale price) goes up significantly. The higher the difference (between the sale and cost price), the higher is your tax liability.
