Current Affair 1:

News:

The Income Tax Department has notified the Cost Inflation Index (CII) for the fiscal year 2024-25 to calculate long-term capital gains from the sale of assets.

The CII reflects economic inflation, with an increase of 15 points from the previous year, aiding taxpayers in adjusting gains for inflation and reducing tax liabilities

Income Tax Department (Ministry of Finance) has notified 'The cost Inflation Index (CII)' for calculating long-term capital gain tax arising from the sale of immovable properties, securities (shares/bonds), and jewelry).

For example. If I purchased a house worth Rs. 1 crore in present year and sold it in Rs. 1.1 crore next year and the CII is 10% then I do not need to pay any capital gain tax as the increase in the price of my house is just equivalent to inflation. If there is any additional gain over inflation (CII) then only I need to pay any capital gain tax.

 

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