For computing long-term capital gains, ‘indexed cost of acquistion’ and ‘indexed cost of imporvement’ are required to be deducted from the full value of consideration of the capital asset. Both these costs are thus required to be indexed with respect to the cost inflation index pertaining to the year of transfer. Cost Inflation Index from 1981-82 to 2011-12 FINANCIAL YEAR COST INFLATION INDEX FINANCIAL YEAR COST INFLATION INDEX 1981-82 100 1982-83 109 1983-84 116 1984-85 .....
