Cost Inflation Index for Financial Year 2012-13 : 852

CBDT has notified the Cost Inflation Index for Financial Year 2012-13 as 852.

Cost inflation index is a measure of inflation. The Central Government by notification announces this index based on 75% of the average rise in the consumer price index for urban non-manual employees for the previous year.

Cost inflation index is used for calculating the Indexed cost of acquisition or indexed cost of improvements of the assets while calculating the long term capital gain. With the use of this index the cost of the asset is increased to compensate the inflation.

The Indexed cost of acquisition or improvement will be determined using Cost Inflation Index with the following formula.

	___Cost of acquisition/ improvement_____	X	Cost inflation index for the year in which the asset is transferred
	Cost inflation index for the year in which the asset is acquired / improvement took place

Cost of Inflation Index from 1981-82 to 2012-13

Financial Year	Cost of Inflation Index
1981 - 82	100
1982 - 83	109
1983 - 84	116
1984 - 85	125
1985 - 86	133
1986 - 87	140
1987 - 88	150
1988 - 89	161
1989 - 90	172
1990 - 91	182
1991 - 92	199
1992 - 93	223
1993 - 94	244
1994 - 95	259
1995 - 96	281
1996 - 97	305
1997 - 98	331
1998 - 99	351
1999 - 00	389
2000 - 01	406
2001 - 02	426
2002 - 03	447
2003 - 04	463
2004 - 05	480
2005 - 06	497
2006 - 07	519
2007 - 08	551
2008 - 09	582
2009 - 10	632
2010 - 11	711
2011 - 12	785
2012 - 13	852