Context:
Central Board of Direct Taxes (CBDT) notifies CII For Financial Year 2024- 25 for calculating long-term capital gains (LTCG).
- Notified under – Income-tax Act (1961)
- Used by taxpayers to compute gains arising out of sale of capital assets after adjusting for inflation
- Normally, an asset is required to be retained for more than 36 months (24 months for immovable property and unlisted shares, 12 months for listed securities) to qualify as ‘long-term capital gains‘.
- Till FY 2022-23, the CII number was used to calculate the long-term capital gains from non-equity mutual fund schemes (debt mutual fund schemes, gold mutual fund schemes etc.)
- But from FY 2023-24, the indexation benefit on long-term capital gains from non-equity mutual fund schemes has been removed.
- Calculation of Inflation-adjusted price = (CII of the sale year/CII of the purchase year) * Actual price of the asset.
Central Board of Direct Taxes (CBDT):
- Part of – Department of Revenue in the Ministry of Finance.
- Functions –
- Provides essential inputs for policy and planning of direct taxes in India
- Administration of direct tax laws through the Income Tax Department.
Source: The Economic Times
Previous Year Question
Consider the following statements:
1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).
2. The WPI does not capture changes in the prices of services, which CPI does.
3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.
Which of the statements given above is/are correct?
[UPSC Civil Services Exam – 2020 Prelims]
(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1, 2 and 3
Answer: (a)
