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The Economic Times
The Economic Times
Sneha Kulkarni

Cost Inflation Index: How it can help you file your income tax return

Inflation capital gains Income Tax Department the Income Tax Department Income Tax

The Income Tax Department has notified the Cost Inflation Index (CII) which is used by taxpayers to calculate the inflation-adjusted cost of certain capital assets while computing long-term capital gains tax relevant to the tax year 2026-27.

The CII for the tax financial year 2026-27 has been notified as 384. This figure (384) will be used to compute the indexed cost of acquisition for assets sold in TY 2026-27. This new index number will take effect on April 1, 2026.

The new index will be used for computing the indexed cost of acquisition wherever indexation benefits are available under the Income Tax Act, 2025.

The Cost Inflation Index (CII) for the financial year 2025-26 was 376.

As per the Income Tax Department social media post on X (previously known as X) states, “CBDT notifies the Cost Inflation Index (CII) for FY 2026-2027 vide Notification No. 85/2026. The Cost Inflation Index for FY 2026-27 relevant to tax year 2026-27 is 384.”

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