Cost inflation index for computation of long term capital gain

Introduction:  In the case of the transfer of long-term capital assets for the computation of capital gain, the cost of acquisition and cost of improvement is to be indexed by applying the Cost Inflation Index (hereinafter called CII)  of the FY in which capital assets are transferred and the CII of the FY of acquisition and improvement. CII of different FYs is listed here.

Indexed cost of acquisition =  cost of acquisition [X]  (Cost Inflation Index for the year in which the asset is transferred) / Cost Inflation Index for the first year in which the asset was held by the assessee or for the year beginning on the 1st day of April 2001], whichever is later;

Indexed cost of any improvement = cost of improvement [X] Cost Inflation Index for the year in which the asset is transferred/ Cost Inflation Index for the year in which the improvement to the asset took place;