Finance Ministry notifies Cost Inflation Index (CII)  for F.Y. 2024-25 [Read Notification]

The Central Board of Indirect Taxes (CBDT) under the Ministry of Finance has notified the Cost Inflation Index (CII) for the Financial year 2023-24 vide notification no. S.O. 2571(E) on 12th July 2023. The new cost inflation index is applicable to coming assessment years.

The Central Government hereby amends the notification of the Government of India, Ministry of Finance (Department of Revenue), Central Board of Direct Taxes in accordance with the authority granted by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961.

As per the notification, the new cost inflation index is ‘348’. The Central Government has fixed the provisional cost inflation. As per the notification issued on 10th April 2023, it was provided the Provisional index of Cost inflation i.e., 348. However, the Central Government has fixed the same through this notification.

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 1692(E), dated the 10th April, 2023.

The CBDT frequently updates the CII to account for changes in inflation. India uses the Cost Inflation Index (CII) as a tool to modify asset acquisition costs for tax purposes. It is published by the Central Board of Direct Taxes (CBDT) and used to determine the cost of assets after accounting for inflation, especially to determine long-term capital gains.

This notification shall come into force with effect from the 1st day of April, 2024 and shall, accordingly, apply to the assessment year 2024-25 and subsequent assessment years.

Redd More: CBDT notifies Provisional Cost Inflation Index (CII) for FY 2023-24

To Read the full text of the Order CLICK HERE

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