Income Tax - Cost Inflation Index for financial year 2007-08 is "551" "

NOTIFICATION NO. 214/2007, DATED 3-8-2007

In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government, having regard to seventy-five per cent of the average rise in the Consumer Price Index for the financial year commencing from the 1st day of April, 2006 and ending on the 31st day of March, 2007 for the urban non-manual employees, hereby specifies the Cost Inflation Index for the financial year commencing from the 1st day of April, 2007 and ending on the 31st day of March, 2008 and for that purpose further makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes, Number S.O. 709(E), dated the 20th August, 1998, namely:—

In the said notification, in the Table, after serial number 26 and the entries relating thereto, the following serial number and the entries relating thereto shall be added, namely :—

"27                       2007-08                       551"

[F. No. 142/5/2007-TPL]

Cost Inflation Index updated to adjust indexed cost for capital gains under the income-tax provision. Cost Inflation Index specified as 551 for the financial year 2007-08 to determine indexed cost for capital gains, fixed under the Explanation to the income-tax provision on the basis of seventy-five per cent of the average rise in the Consumer Price Index for urban non-manual employees, and inserted into the official notification table by amendment.