❖ Cost Inflation Index (CII) for Financial Year 2024-25 has been fixed at 363.

❖ The CII number for last fiscal was 348 and for 2022-23 financial year it was 331.

❖ It shows a rise of 4.3 per cent.

❖ The Central Board of Direct Taxes (CBDT) has notified the index.

❖ CII is a way to calculate inflation, that is, an estimated increase in the price of a good or service over the years.

❖ Indexation is used to adjust the purchase price of an investment to reflect the effect of inflation on it.

❖ A higher purchase price means lesser profits, which effectively means a lower tax