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The Central Board of Direct Taxes(CBDT) vide Notification no.32/2020 dated 12th June 2020 has notified the Cost Inflation Index(CII) for the assessment year 2021-2022 and subsequent years by inserting "S.I.No.20". For Starters, Cost Inflation Index is basically a price inflation adjustment due to the timing difference between the date of purchase of asset and date of sale of the asset. It is present purchase value of the asset that is to be sold. Cost Inflation Index is a tool used in the calculation of an estimated yearly increase in an asset’s price as a result of inflation. The Central Government fixes this index and publishes it in its official gazette for measuring inflation. This index, notified each year by the Government is defined under Section 48 of the Income Tax Act, 1961. The intention of the legislature is to tax the real gain on transfer of the capital asset, not the profit due to inflation. In order to achieve this objective, the “Indexation” is introduced in...