Income Tax Department notified Cost Inflation Index for current Financial Year

The Income Tax Department has notified the Cost Inflation Index for current Financial Year 2024-25 via issuing a notification.

CII is a very famous concept that is used for the purpose of calculating the gains that occur due to the transfer of capital assets, in order to get the index that shows the impact of inflation, use the Cost Inflation Index.

The CII for the financial year 2024-25 with reference to the assessment year 2025-26 was set at 363 and notified by the Central Board of Direct Taxes (CBDT) through a notification.

The CII number was 348 for the last financial and for the 2022-23 financial year, the number of CII was 331.

Rajat Mohan the executive Director of Moore Singhi stated that CII indicates the inflation in the economy that leads to the fact that the price of goods and services rises over a period of time.

According to the report, for FY 2023–24, the CII was fixed at 348. The index for this next financial year 2024-25 has been upgraded to a new index of 363, which is 15 points more than it was and represents an inflation rate of about 4.3%.

Rajat Mohan also added “This is in line with the rates of retail inflation of 4.83 % as projected to be registered in April 2024. A higher CII is preferred by the taxpayer as it will result in higher tax credits being claimed”.

For Official Notification Download PDF Given Below: