10.2 % rise in Cost Inflation Index (CII) for 2013-14

The Central Board of Direct Taxes (CBDT) has specified a rise of 10.2% in the value for the Cost Inflation Index (CII) for 2013-14. In 2012, the index was ‘852’, and this year it is ‘939’ which shows a 10.2% increase in the cost inflation index for 2013-14.

What is Cost Inflation Index?

It is a measure of inflation that finds application in tax law, when computing long-term capital gains on sale of assets. Section 48 of the Income-Tax Act defines the index as what is notified by the Central Government every year, having regard to 75% of average rise in the Consumer Price Index (CPI) for urban non-manual employees for the immediately preceding previous year.

How does it help?

  • A cost inflation index helps reduce the inflationary gains, thereby reducing the long-term capital gains tax payout for a taxpayer. Currently, the income-tax law allows long-term capital gains to be computed after adjusting for inflation. At present,
  • The cost of acquisition as well as the cost of improvement is adjusted for inflation b/w the date of purchase and date of sale (through the CII) before the long-term capital gain is ascertained. Currently, the holding period is different for different assets for deciding the applicability of long-term capital gains.
  • Under the new Direct Taxes Code which will be effective from April 1, 2014, the test for non-business assets will be a uniform holding period of one year.

Month: Categories: India Current Affairs 2018

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Dhoni stands at 16th spot on Forbes list of highest-paid athletes

As per the Forbes latest rankings of the highest paid athletes in the world, India skipper M S Dhoni, with earnings of $31.5 million, has been ranked at 16th place as leaped 15 positions from his previous 31st rank in 2012.

US golfer Tiger Woods is at the pinnacle of the list  with total earnings of $78.1 million last year.
The magazine said 31-year-old Dhoni moved up 15 positions this year. In 2012, he was placed at 31st position.

Top 10 on the Rankings:

Rank

Name Country Pay  (Salary + Endorsements) ($)

Sport

1. Tiger Woods USA 78.1m Golf
2. Roger Federer Switzerland 71.5m Tennis
3. Kobe Bryant USA 61.9m Basketball
4. LeBron James USA 59.8m Basketball
5. Drew Brees USA 51m American football
6. Aaron Rodgers USA 49m American football
7. Phil Mickelson USA 48.7m Golf
8. David Beckham UK 47.2m Soccer
9. Cristiano Ronaldo Portugal 44m Soccer
10. Lionel Messi Argentina 41.3m

Soccer

 

Month: Categories: International Current Affairs 2018Persons in News 2018Sports Current Affairs 2018

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