Cost Inflation Index for FY 20-21 notified



Quick Summary
The Central Board of Direct Taxes has officially notified the Cost Inflation Index (CII) for the financial year 2020-21. The index has been set at 301. This notification, which comes into effect from April 1st, 2021, will apply to the assessment year 2021-22 and all subsequent years. The updated index is crucial for calculating capital gains tax on the sale of assets.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 12th June, 2020
Income-Tax

S.O. 1879(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:-

   
Sl. No. Financial Year Cost Inflation Index
(1) (2) (3)
"20 2020-21 301"

2. In the said notification, in the Table, after serial number 19, the following serial number and entries relating thereto, shall be inserted, namely:-

3. This notification shall come into force with effect from 1st day of April, 2021 and shall accordingly apply to the assessment year 2021-22 and subsequent years.

[Notification No. 32/2020/F.No. 370142/17/2020-TPL]
ANKIT JAIN, Under Secy. (Tax Policy and Legislation)

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 and last amended by the notification number S.O.3266 (E), dated the 12th September,2019

FAQ :

The Cost Inflation Index for the financial year 2020-21 has been notified as 301.

This notification comes into force from the 1st day of April, 2021.

It will apply to the assessment year 2021-22 and subsequent years.

The notification was issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes.

The Cost Inflation Index is used to adjust the cost of an asset for inflation when calculating capital gains tax.




News posted by

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

Comments :


More »


Popular News





CCI Pro



Company
Featured 19 August 2026
Chartered Accountant

apricus india

Pune

CA

View Details
Company
08 September 2026
Audit Executive

Thammana & Associates

Srikakulam

B.Com

View Details
Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
19 August 2026
Chartered Accountant - Financial Consolidation & Reporting

Synergy Keystone

Mumbai

CA

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details