The Cost Inflation Index (CII) for the Financial Year (FY 2021-22) and AY 2022-23 is 317.
For the previous FY 2020-21, the CII Number was 301.
The CII Number for the last 5 financial years is FY2021-22 (CII is 317), FY2020-21 (CII is 301), FY2019-20 (CII is 289), FY2018-19 (CII is 280), FY2017-18 (CII is 272). For a list of historical CII numbers since FY2001-02, please check this detailed post Historical Cost Inflation Index (CII) Numbers
This CII number is important as it will be used to compute inflation-adjusted long-term capital gains (LTCG) on assets such as a house, gold, debt mutual funds (MF), etc. And it goes without saying that you can use the CII number to calculate inflation-adjusted cost only for those assets where inflation-adjusted (indexation benefit) is allowed. For example – the LTCG arising from equity shares and equity mutual funds is not eligible for indexation benefit. But you can reduce taxes on debt funds by using indexation benefits. Debt mutual funds are increasingly becoming popular among investors looking for alternatives to bank fixed deposits. And due to the availability of indexation benefit for capital gains on debt fund taxation, increasingly the debt funds are gaining over fixed deposits as the impact of tax on debt funds (after 3 years) is much less than when compared to bank FDs (which are taxed as per the individual’s marginal tax slab). In fact, if you time it well, you can get an Indexation benefit of 4 years in just 3 years.
So now you know the latest CII number 317 for FY 2021-22 in India.