Cost Inflation Index (CII) table and indexed cost calculator

What is the Cost Inflation Index for FY 2025-26 and 2026-27?

The CII is 376 for FY 2025-26 and 384 for FY 2026-27 (tax year 2026-27 under the Income-tax Act, 2025; CBDT Notification 85/2026). The base year is 2001-02 = 100. The CII for FY 2027-28 is not yet notified — until it is, use 384 for an estimate and recheck later.

Full table: 2001-02: 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.

The Central Government notifies each year’s index based on 75% of the average rise in the urban Consumer Price Index (section 72(8) of the 2025 Act, earlier the Explanation to section 48).

How do you calculate the indexed cost of acquisition?

Indexed cost of acquisition = cost × CII of the year of sale ÷ CII of the first year you held the asset, or 2001-02 if that is later. Each improvement is indexed separately from the year it was made: improvement cost × CII of the sale year ÷ CII of the improvement year.

Example: land bought in FY 2010-11 for ₹20 lakh and sold in FY 2026-27. Indexed cost = ₹20,00,000 × 384 ÷ 167 = ₹45,98,802. A ₹3 lakh boundary wall built in 2018-19 adds ₹3,00,000 × 384 ÷ 280 = ₹4,11,429.

If the property was acquired before 1 April 2001, you can use its fair market value on 1 April 2001 as the cost (section 90(9) of the 2025 Act, old section 55(2)(b)), indexed from the base of 100. For land and buildings, that value cannot exceed the stamp duty value on that date, and spending before 1 April 2001 is ignored.

Is indexation still allowed on property after 23 July 2024?

Only as an option for resident individuals and HUFs. Since 23 July 2024, long-term gains on land and buildings are taxed at 12.5% without indexation. For land or buildings acquired before that date, a resident individual or HUF pays whichever is lower: 12.5% without indexation, or 20% with indexation (section 197(3) of the Income-tax Act, 2025; earlier the proviso to section 112(1)(a)).

NRIs, and anyone selling property acquired on or after 23 July 2024, pay 12.5% on the unindexed gain. Surcharge and 4% cess apply on top in every case.

Indexation tends to win when the property was bought fairly recently and the price has grown slowly; 12.5% wins when the price has multiplied many times over. The calculator shows the sale price at which the two options cross over.

Which year’s CII applies to inherited or gifted property?

For property you inherited or received as a gift, the cost is what the previous owner paid (section 73 of the 2025 Act, old section 49), and their holding period counts as yours. Courts, including the Bombay High Court in Manjula J. Shah, have allowed indexation from the year the previous owner acquired it, not the year you inherited it.

If the previous owner acquired it before 1 April 2001, use the fair market value on 1 April 2001 and the base CII of 100. The tax office has sometimes argued for the year of inheritance, so keep the previous owner’s deed or a registered valuer’s report with your papers.

When is land a long-term capital asset?

Land and buildings are long-term when held for more than 24 months before the sale (section 2(101) of the 2025 Act, old section 2(42A)). Short-term gains are added to your income and taxed at slab rates, with no indexation.

Using financial years alone: if you bought and sold in the same or the next financial year, it is short-term; three or more years apart, it is long-term; exactly two years apart, check the actual dates of the sale deeds.