The Central Board of Direct Taxes (CBDT) has notified the Cost Inflation Index (CII) for the Financial Year 2025-26 (Assessment Year 2026-27) as 376, through Notification No. 70/2025 dated 1st July 2025.
This index will be applicable for calculating Long Term Capital Gains (LTCG) for assets sold during the Financial Year 2025-26.
What is Cost Inflation Index (CII)?
Cost Inflation Index (CII) is used to adjust the purchase price of capital assets for inflation while calculating Long-Term Capital Gains under Income Tax Act, 1961 (Section 48 Explanation (v)).
This helps taxpayers reduce their taxable capital gain by considering inflation-adjusted costs.
Latest Cost Inflation Index Table (from Base Year 2001-02 onwards)
| Sl. No. | Financial Year | CII |
|---|---|---|
| 1 | 2001-02 (Base Year) | 100 |
| 2 | 2002-03 | 105 |
| 3 | 2003-04 | 109 |
| 4 | 2004-05 | 113 |
| 5 | 2005-06 | 117 |
| 6 | 2006-07 | 122 |
| 7 | 2007-08 | 129 |
| 8 | 2008-09 | 137 |
| 9 | 2009-10 | 148 |
| 10 | 2010-11 | 167 |
| 11 | 2011-12 | 184 |
| 12 | 2012-13 | 200 |
| 13 | 2013-14 | 220 |
| 14 | 2014-15 | 240 |
| 15 | 2015-16 | 254 |
| 16 | 2016-17 | 264 |
| 17 | 2017-18 | 272 |
| 18 | 2018-19 | 280 |
| 19 | 2019-20 | 289 |
| 20 | 2020-21 | 301 |
| 21 | 2021-22 | 317 |
| 22 | 2022-23 | 331 |
| 23 | 2023-24 | 348 |
| 24 | 2024-25 | 363 |
| 25 | 2025-26 | 376 ✅ |
From When Will This New CII Apply?
The notified CII of 376 will apply for capital assets sold during F.Y. 2025-26 (A.Y. 2026-27) and subsequent years.
How Does CII Impact Long-Term Capital Gains (LTCG)?
Formula for Indexed Cost of Acquisition:
Indexed Cost = Original Purchase Price × (CII of Sale Year ÷ CII of Purchase Year)
This reduces your taxable gain by factoring inflation.
✅ Example:
Suppose you purchased a property in F.Y. 2010-11 (CII = 167) for ₹10,00,000 and sold it in F.Y. 2025-26 (CII = 376).
Indexed Cost = ₹10,00,000 × (376 ÷ 167) ≈ ₹22,51,497
So, your capital gain will be calculated after considering this indexed cost.
The Cost Inflation Index (CII) for F.Y. 2025-26 is now notified as 376. Taxpayers planning property sales, asset transfers, or capital gain calculations must use this updated index from 1st April 2026 onwards.
