The Central Board of Direct Taxes (CBDT) in June 2013 has specified a value for the cost inflation index of 2013-14. In this regard, which of the statements given below is/are correct?
1There has been a rise in the cost inflation index over the year 2012-13.
2The cost inflation index helps in reducing the inflationary gains, thereby reducing the long-term capital gains tax payout for a taxpayer.
Select the correct answer using the code given below.

Question

The Central Board of Direct Taxes (CBDT) in June 2013 has specified a value for the cost inflation index of 2013-14. In this regard, which of the statements given below is/are correct?

1There has been a rise in the cost inflation index over the year 2012-13.
2The cost inflation index helps in reducing the inflationary gains, thereby reducing the long-term capital gains tax payout for a taxpayer.

Select the correct answer using the code given below.

Accepted Answer

Option C: Both 1 and 2