Cost inflation index: the full table to FY 2026-27
The cost inflation index lets you raise the purchase cost of an asset for inflation before working out the capital gain. Since July 2024 it matters mainly for one case: resident individuals and HUFs selling land or a building they bought before 23 July 2024.
Reviewed by Vijay Dhawan, Managing Partner, LexVerge LLP, on · Published
Quick answer
The cost inflation index (CII) for FY 2026-27 is 384, notified by the CBDT in Notification No. 85/2026. For FY 2025-26 it was 376 and the base year is 2001-02 at 100. Under the Income-tax Act, 2025 the index is defined in section 72(8)(a). Indexed cost = purchase cost × CII of the year of sale ÷ CII of the year of purchase.
Cost inflation index table, 2001-02 to 2026-27
| Financial year | CII | Financial year | CII |
|---|---|---|---|
| 2001-02 | 100 | 2014-15 | 240 |
| 2002-03 | 105 | 2015-16 | 254 |
| 2003-04 | 109 | 2016-17 | 264 |
| 2004-05 | 113 | 2017-18 | 272 |
| 2005-06 | 117 | 2018-19 | 280 |
| 2006-07 | 122 | 2019-20 | 289 |
| 2007-08 | 129 | 2020-21 | 301 |
| 2008-09 | 137 | 2021-22 | 317 |
| 2009-10 | 148 | 2022-23 | 331 |
| 2010-11 | 167 | 2023-24 | 348 |
| 2011-12 | 184 | 2024-25 | 363 |
| 2012-13 | 200 | 2025-26 | 376 |
| 2013-14 | 220 | 2026-27 | 384 |
For an asset bought before 1 April 2001, the cost is taken as the fair market value on 1 April 2001, which is indexed from 100.
Who can still use indexation
Since 23 July 2024, long-term capital gains are taxed at 12.5% without indexation. The exception: a resident individual or HUF selling land or a building acquired before 23 July 2024 can compute the tax both ways, 12.5% without indexation or 20% with indexation, and pay the lower amount. Non-residents, companies and firms do not get the choice, and shares, mutual funds and gold are taxed at 12.5% without indexation.
Worked example
A resident bought a flat in FY 2015-16 for ₹40 lakh and sells it in FY 2026-27 for ₹1.1 crore.
| With indexation (20%) | Without indexation (12.5%) | |
|---|---|---|
| Cost used | ₹40 lakh × 384 ÷ 254 = ₹60.47 lakh | ₹40 lakh |
| Long-term capital gain | ₹49.53 lakh | ₹70 lakh |
| Tax before surcharge and cess | ₹9.91 lakh | ₹8.75 lakh |
Here 12.5% without indexation is cheaper, so that is the tax. Where the property has risen less than inflation, indexation usually wins. Try both with our capital gains tax calculator for property.
Frequently asked questions
What is the cost inflation index for FY 2026-27?
384, notified by the CBDT in Notification No. 85/2026.
What is the cost inflation index for FY 2025-26?
376. The index for FY 2024-25 was 363 and for FY 2023-24 was 348.
How is indexed cost calculated?
Multiply the purchase cost by the CII of the year of sale and divide by the CII of the year of purchase. For example, ₹40 lakh bought in 2015-16 and sold in 2026-27 becomes ₹40 lakh × 384 ÷ 254.
Is indexation still allowed on property?
Only for resident individuals and HUFs selling land or a building acquired before 23 July 2024, who can choose 20% with indexation or 12.5% without, whichever gives lower tax.
What is the base year for the cost inflation index?
2001-02, with an index of 100. Assets bought earlier use their fair market value on 1 April 2001.
ITR with Capital Gains from ₹799, by a CA.
Equity, mutual fund, ESOP, crypto and property schedules prepared by a CA.
Professional fee shown; government charges at actuals, quoted in writing before you pay. GST at 18% extra.
See what is included and the full priceSold property or shares this year?
We compute the gain both ways, claim any exemption and file the return, from ₹799.
Keep reading.
TDS on Property Purchase: Section 194-IA, Form 26QB, Joint Buyers, and the Very Different Rules When the Seller Is an NRI
1% through Form 26QB when the seller is resident and the price is ₹50 lakh or more; 12.5% to 30% on the whole price, with a TAN, when the seller is an NRI.
Read guide→GuideIncome from house property
Annual value, the 30% deduction, interest limits by regime, self-occupied vs let-out, and set-off of losses.
Read guide→Official references
The statutory sources behind this page. We keep our guidance aligned to them: verify anything time-sensitive directly.
- Ministry of Corporate AffairsCompanies Act filings, forms and fee schedules
- Income Tax DepartmentReturns, forms, rates and e-filing utilities
- GST PortalRegistration, returns and rate notifications
Facts on this page are checked against these sources; the date of the last check is shown at the top of the page. It is general guidance, not advice on your specific facts. How we write and check our guides.