How is Cost Inflation Index Computed

Last updated at April 16, 2024 by Teachoo

Meaning of Cost Inflation Index

Before Amendment

After Amendment

Cost Inflation Index” (CII)

in relation to a previous year, to

mean such index as may be notified by the

Government

having regard to 75% of average rise in the Consumer Price Index (CPI)

for urban non-manual employees (UNME)

for the immediately preceding previous year to such previous year.

Cost Inflation Index”

in relation to a previous year

shall mean such index as may be notified by the Central Government

having regard to 75% of average rise in the Consumer Price Index (Urban)

for the immediately preceding previous year to such previous year

Meaning of Cost Inflation Index

Cost Inflation Index” (CII) in relation to a previous year, to mean such index as may be notified by the

Government having regard to 75% of average rise in the Consumer Price Index

(CPI) for urban non-manual employees (UNME) for the immediately preceding previous year to such previous year.

Effect of Amendment

(iii) Since the release of CPI for UNME has been discontinued, accordingly, clause (v)

of the Explanation to section 48 has been amended

Class 6