COST INFLATION INDEX FY 2018-19 RELEASED

COST INFLATION INDEX FY 2018-19 RELEASED    

The finance act 2016 to shift the base year for giving the tax payer the option to get the market value of the property to April 1, 2001, instead of the earlier date of April 1, 1981. This provision has given some benefit to the tax payers, as the market price of immovable property has increased more during the period, as compared to the increase in the cost inflation index announced by the government from time to time.So if property has been acquired before 01.04.2001 then capital appreciation before 01.04.2001 has been exempted from income tax.For capital assets acquired before 01.04.2001,Market price or cost price as on 01.04.2001 is to be considered as cost price for calculation of Capital gain.

Now Ministry of finance has issued cost inflation Index for 2001 series for financial year 2018-19 as under

MINISTRY OF FINANCE (Department of Revenue) (Central Board of Direct Taxes) NOTIFICATION New Delhi, the 13th June, 2018 INCOME-TAX S.O. 2413(E).— 

In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), Central Board of Direct Taxes, published in the Gazette of India, Extraordinary, vide number S.O. 1790(E), dated the 5th June, 2017, namely:- 2. 

In the said notification, in the Table, after serial number 17, the following serial number and entries relating thereto, shall be inserted, namely:- 

Sl. No. Financial Year Cost Inflation Index 

(1)                  (2)                    (3) 

 “18           2018-19                280”. 

3. This notification shall come into force with effect from 1st day of April, 2019 and shall accordingly apply to the Assessment Year 2019-20 and subsequent years. [Notification No.26/2018/F.No.370142/3/2018-TPL] PRAVIN RAWAL, Director (TPL) Note:- The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section(ii), vide number S.O. 1790(E), dated the 5th June, 2017.