Cost Inflation Index (CII) FY2022-23 is 331

What is the Cost Inflation Index (CII) for the Financial Year (FY 2022-23) and AY 2023-24 as notified by CTBT?

Cost Inflation Index (CII) for FY2022-23 is 331

Cost Inflation Index (CII) for FY2022-23 is 331

For the previous FY 2021-22, the CII Number was 317.

The CII Number for the last 5 financial years is FY2022-23 (CII is 331), FY2021-22 (CII is 317), FY2020-21 (CII is 301), FY2019-20 (CII is 289) and FY2018-19 (CII is 280). For a list of historical CII numbers since the financial year 2001-02, 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 331 for FY 2022-23 in India.

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