Cost inflation index is usded for calculation of tax on long-term capital gains
The Central Board of Direct Taxes (CBDT) has specified a value for the cost inflation index at 1024 for 2014-15, raising from 939 for 2013-14. The cost inflation index shows an increase of 9.05% for FY2015 over FY2014.The index is used by income tax assesses in the calculation of tax on long-term capital gains. A cost inflation index reduces the inflationary gains, thereby reducing the long-term capital gains tax obligation for a taxpayer.
The cost inflation index had shown an increase of 10.2% in 2013-14.
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