The Central Board of Direct Taxes vide its notification dated 12th June 2020 has notified the cost inflation index at 301 for the financial year 2020-21.
The cost inflation index is a factor used to adjust the cost or purchase price of an asset for inflation. It enables the calculation of the long-term capital gains arising from the sale of a capital asset.
The cost inflation index for FY 2020-21 shall come into force with effect from the 1st day of April 2021, and shall accordingly apply to the assessment year 2021-22 i.e FY2020-21 and subsequent years.
Click here to read the notification.
