The cost inflation index (CII) for FY 2026-27 is 384. The Central Board of Direct Taxes (CBDT) notified it on 15 July 2026 (Notification 85/2026). For FY 2025-26 the CII is 376. The base year is 2001-02, with a CII of 100. You use the CII to work out the indexed cost of a long-term asset, mainly land or a building bought before 23 July 2024.
- CII for FY 2026-27: 384. For FY 2025-26: 376. For FY 2024-25: 363.
- Base year: 2001-02 = 100.
- Indexed cost = cost × (CII of the year of sale ÷ CII of the year of purchase, or of 2001-02 if you bought earlier).
- For sales on or after 23 July 2024, indexation helps only a resident individual or HUF selling land or a building bought before 23 July 2024.
Cost inflation index table, FY 2001-02 to 2026-27
This is the full CII chart published by the Income Tax Department. Use the CII of the financial year in which you bought the asset, and the CII of the financial year in which you sold it.
| Financial year | Cost inflation index (CII) |
|---|---|
| 2001-02 (base year) | 100 |
| 2002-03 | 105 |
| 2003-04 | 109 |
| 2004-05 | 113 |
| 2005-06 | 117 |
| 2006-07 | 122 |
| 2007-08 | 129 |
| 2008-09 | 137 |
| 2009-10 | 148 |
| 2010-11 | 167 |
| 2011-12 | 184 |
| 2012-13 | 200 |
| 2013-14 | 220 |
| 2014-15 | 240 |
| 2015-16 | 254 |
| 2016-17 | 264 |
| 2017-18 | 272 |
| 2018-19 | 280 |
| 2019-20 | 289 |
| 2020-21 | 301 |
| 2021-22 | 317 |
| 2022-23 | 331 |
| 2023-24 | 348 |
| 2024-25 | 363 |
| 2025-26 | 376 |
| 2026-27 | 384 |
Source: Income Tax Department, Cost Inflation Index, and for 2026-27, CBDT Notification 85/2026. Values checked on 4 October 2026.
CII for FY 2026-27 and FY 2025-26
| Year | CII | Notified by | Law |
|---|---|---|---|
| FY 2026-27 (tax year 2026-27) | 384 | Notification 85/2026, S.O. 3889(E), 15 July 2026 | Section 72(8)(a), Income-tax Act, 2025 |
| FY 2025-26 | 376 | Notification 70/2025, 1 July 2025 | Section 48, Explanation (v), Income-tax Act, 1961 |
The FY 2026-27 notification says it applies to the tax year 2026-27 from 1 April 2026 and to later tax years. So if you sell an asset between 1 April 2026 and 31 March 2027, the CII for the year of sale is 384.
A new CII does not change an older sale. The law uses the CII of the year in which the asset is transferred. A sale made in FY 2025-26 still uses 376.
What is the cost inflation index?
The cost inflation index is a number the Central Government notifies each year to measure inflation for capital gains. The law says it is fixed having regard to 75% of the average rise in the Consumer Price Index (urban) for the year before.
Its job is to raise the purchase price of an asset in line with inflation. A higher cost means a lower taxable gain. This raised cost is called the indexed cost of acquisition.
| Sale made | Law that defines CII |
|---|---|
| Up to 31 March 2026 | Income-tax Act, 1961, section 48, Explanation (v) |
| From 1 April 2026 | Income-tax Act, 2025, section 72(8)(a) |
How to calculate indexed cost of acquisition
Indexed cost of acquisition = cost of acquisition × CII of the year of sale ÷ CII of the year of purchase
If you bought the asset before 1 April 2001, use the CII of 2001-02 (100) instead of the year of purchase.
Indexed cost of improvement = cost of improvement × CII of the year of sale ÷ CII of the year in which the improvement was made
Both definitions read the same way in the 1961 Act (section 48) and the 2025 Act (section 72(8)).
Bought before 1 April 2001? You can take either the actual cost or the fair market value on 1 April 2001 as your cost. For land or a building, that fair market value cannot be more than the stamp duty value on 1 April 2001. This is section 55(2)(b) of the 1961 Act and section 90(9)(a) and 90(10) of the 2025 Act.
Once you have the indexed cost, the gain is the sale price minus the indexed cost, minus the indexed cost of any improvement and your transfer expenses. Our guide on capital gains tax on property walks through the full calculation, including section 50C and exemptions. To run the numbers for your own sale, use our capital gains calculator.
Worked example: flat bought in 2010-11, sold in 2026-27
Ravi, a resident individual, bought a flat in FY 2010-11 for ₹20,00,000. He sells it in FY 2026-27 for ₹80,00,000. He has no transfer expenses, no improvement cost and claims no exemption.
| Step | With indexation (20%) | Without indexation (12.5%) |
|---|---|---|
| Cost used | ₹20,00,000 × 384 ÷ 167 = ₹45,98,802 | ₹20,00,000 |
| Long-term capital gain | ₹80,00,000 less ₹45,98,802 = ₹34,01,198 | ₹80,00,000 less ₹20,00,000 = ₹60,00,000 |
| Tax before surcharge and cess | 20% = ₹6,80,240 | 12.5% = ₹7,50,000 |
The law asks for tax at 12.5% without indexation, and then ignores any tax above the old 20% with indexation amount (section 197(3), 2025 Act). Here the excess is ₹69,760, so Ravi's tax before surcharge and cess is ₹6,80,240. Our reading: in effect, he pays the lower of the two amounts.
Figures are rounded to the nearest rupee. Surcharge, 4% cess and any exemption change the final tax.
Is indexation still available?
Indexation was removed for sales on or after 23 July 2024. One case remains.
| Your case | Indexation? |
|---|---|
| Land or building sold before 23 July 2024 | Yes, with tax at 20% (old rule) |
| Land or building bought before 23 July 2024, sold on or after that date, by a resident individual or HUF | Yes, as a cap: tax at 12.5% without indexation, but any tax above 20% with indexation is ignored |
| Land or building sold on or after 23 July 2024 by anyone else (for example a non-resident, a firm or a company) | No. Tax at 12.5% without indexation |
| Land or building bought on or after 23 July 2024 | No |
| Shares, mutual fund units and other assets sold on or after 23 July 2024 | No. Long-term gains are taxed at 12.5% without indexation |
FY 2025-26 (sale from 1 April 2025 to 31 March 2026): the 1961 Act applies. Its section 112 gives the same land or building relief to a resident individual or HUF.
FY 2026-27 (sale from 1 April 2026): the 2025 Act applies. Section 197(3) gives the same relief, and section 72(2) lets the 20% figure use indexed cost.
For shares and mutual funds, see our guides on capital gains tax on shares and debt mutual fund taxation.
Frequently asked questions
What is the cost inflation index for FY 2026-27?
The CII for FY 2026-27 is 384. CBDT notified it on 15 July 2026 under section 72(8)(a) of the Income-tax Act, 2025 (Notification 85/2026). It applies from 1 April 2026.
What is the CII for FY 2025-26?
The CII for FY 2025-26 is 376 (Notification 70/2025, dated 1 July 2025).
What is the cost inflation index for FY 2024-25?
The CII for FY 2024-25 is 363.
What is the current CII?
As of 4 October 2026, the latest notified CII is 384, for FY 2026-27.
What is the indexation rate for 2026-27?
There is no separate "indexation rate". Indexation uses the CII, which is 384 for FY 2026-27. You divide it by the CII of the year you bought the asset and multiply the result by your cost.
Is indexation benefit available for FY 2025-26?
Only in one case. A resident individual or HUF selling land or a building bought before 23 July 2024 can have tax capped at 20% with indexation. For other assets and other sellers, long-term gains are taxed at 12.5% without indexation.
Is indexation applicable on sale of property in FY 2026-27?
Yes, in the same case. Section 197(3) of the 2025 Act covers a resident individual or HUF selling land or a building bought before 23 July 2024. Any tax above the 20% with indexation amount is ignored.
What is the base year of the cost inflation index?
The base year is 2001-02, with a CII of 100.
How is the cost inflation index decided?
The Central Government notifies it having regard to 75% of the average rise in the Consumer Price Index (urban) for the year before.
How do I calculate the indexed cost of acquisition?
Multiply your cost by the CII of the year of sale and divide by the CII of the year of purchase. If you bought before 1 April 2001, use 100, the CII of 2001-02.
Can I use indexation on shares or mutual funds now?
No, not for sales on or after 23 July 2024. Long-term gains on these are taxed at 12.5% without indexation. The relief that keeps indexation covers only land or buildings.
Can an NRI claim indexation on property sold now?
No, not for sales on or after 23 July 2024. The land or building relief in section 112 (1961 Act) and section 197(3) (2025 Act) covers residents only.
Does the new CII change tax on a sale I made last year?
No. The law uses the CII of the year in which the asset was transferred. A sale in FY 2025-26 uses 376, even if you file the return after the FY 2026-27 CII came out.
Hinglish mein sawaal
CII 2026-27 kitna hai?
FY 2026-27 ke liye cost inflation index 384 hai. CBDT ne ise 15 July 2026 ko notify kiya. FY 2025-26 ka CII 376 hai.
Property bechne par indexation ka fayda kisko milta hai?
Sirf resident individual ya HUF ko, jab woh 23 July 2024 se pehle khareedi gayi land ya building bechte hain. Tab 12.5% wala tax, 20% with indexation wale tax se zyada nahi hoga.
Selling property or other assets this year? FilingSetu files income tax returns with capital gains, and a CA checks every return before filing. Talk to us.
Last reviewed: 4 October 2026
FilingSetu is the brand of ANR Consultancy, a partnership firm.
GSTIN: 07ACOFA0324K1ZG
This page explains the law as it stands on the review date. It is not advice on your specific case.
