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of <h1>Govt Amends Cost Inflation Index for FY 2001-02; New Index Set at 426, Reflects CPI Changes for Urban Employees.</h1> The Central Government, under the powers granted by the Income-tax Act, 1961, has amended the Cost Inflation Index for the financial year 2001-02. This amendment considers 75% of the average rise in the Consumer Price Index for urban non-manual employees during the previous financial year. The new Cost Inflation Index for the financial year starting April 1, 2001, and ending March 31, 2002, is set at 426. This amendment follows the previous notification by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, dated August 20, 1998.
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