Cost Inflation Index (CII) for FY 2025–26
Cost Inflation Index (CII) for FY 2025–26
The Central Board of Direct Taxes (CBDT) has notified the Cost Inflation Index (CII) as 376 for FY 2025–26 (AY 2026–27), dated 1 July 2025. This index figure is vital for calculating long-term capital gains (LTCG) on the sale of assets eligible for indexation, particularly immovable property acquired before 23 July 2024.
Cost Inflation Index Table (Base Year: 2001–02 = 100)
|
Financial Year |
Assessment Year |
CII |
|
2001–02 |
2002–03 |
100 |
|
2002–03 |
2003–04 |
105 |
|
2003–04 |
2004–05 |
109 |
|
2004–05 |
2005–06 |
113 |
|
2005–06 |
2006–07 |
117 |
|
2006–07 |
2007–08 |
122 |
|
2007–08 |
2008–09 |
129 |
|
2008–09 |
2009–10 |
137 |
|
2009–10 |
2010–11 |
148 |
|
2010–11 |
2011–12 |
167 |
|
2011–12 |
2012–13 |
184 |
|
2012–13 |
2013–14 |
200 |
|
2013–14 |
2014–15 |
220 |
|
2014–15 |
2015–16 |
240 |
|
2015–16 |
2016–17 |
254 |
|
2016–17 |
2017–18 |
264 |
|
2017–18 |
2018–19 |
272 |
|
2018–19 |
2019–20 |
280 |
|
2019–20 |
2020–21 |
289 |
|
2020–21 |
2021–22 |
301 |
|
2021–22 |
2022–23 |
317 |
|
2022–23 |
2023–24 |
331 |
|
2023–24 |
2024–25 |
348 |
|
2024–25 |
2025–26 |
363 |
|
2025–26 |
2026–27 |
376 |
Frequently Asked Questions (FAQ)
1. What is this new index used for?
It adjusts the original cost of capital assets for inflation, helping reduce tax liability on long-term capital gains.
2. Who can still use indexation?
Indexation is permitted only on immovable property purchased before 23 July 2024. For such assets sold later, taxpayers may opt between: 20% LTCG with indexation or 12.5% LTCG without indexation.
3. Is this applicable to shares, mutual funds, and bonds?
In most cases, no. The benefit of indexation has been withdrawn for many classes of assets post recent amendments.
Indexation is more than just a calculation—it's a strategic lever in tax planning. With the CII now set at 376 for FY 2025–26, taxpayers and professionals should re-evaluate old asset holdings, especially immovable property, to make informed decisions. As capital gain rules continue to evolve, staying updated isn’t optional—it’s the difference between paying more and planning smart.
Disclaimer: This material and the information contained herein is intended for clients and other Chartered Accountants to provide updates and is not an exhaustive treatment of such subject. We are not, by means of this material, rendering any professional advice or services. It should not be relied upon as the sole basis for any decision which may affect you or your business.
