Cost Inflation Index for FY 2025-26 notified by CBDT. See Up-to-date Table of CII

CBDT has notified Cost Inflation Index for Financial Year FY 2025-26 

CBDT has notified “376” as Cost Inflation Index for FY 2025-26. The increase in CII for FY 2025-26 is only 3.58% or 13 points from 363 to 376 as compared increase of 4.31% or 15 points in the preceding year i.e. FY 2024-25.

Cost Inflation Index FY 2024-25 notified as 363

Question: What is Cost Inflation Index for FY 2025-26?

Answer: Cost Inflation Index (CII) for FY 2025-26 is 376 notified by CBDT vide Notification No. 44/2024 dated 24th May 2024

Question: What id Cost Inflation Index?

Answer: Cost Inflation index is used to calculate indexed cost of the asset for calculation of Long Term Capital Gains. Cost Inflation Index has been defined in section 48 of the Income Tax Act 1961 as the Index which the Central Government may notify from time to time having regard to seventy five percent of average risk in the Consumer Price Index.  

Question: What is Base Year for Cost Inflation Index?

Answer: From Assessment Year 2018-19, the base year of the CII has been raised to 2001 from 1981. Now, cost of acquisition of an asset acquired before 01.04.2001 is allowed to be taken as fair market value as on 1st April, 2001 and the cost of improvement shall include only those capital expenses which are incurred after 01.04.2001. 

Question: How to calculate Cost Inflation Index?

Answer: Income Tax Department hosts an online utility to display the Cost Inflation Index for the year of acquisition and year of sale. 

Question: Whether Cost Inflation Index benefit has been abolished?

Answer: The Finance Act 2024 has provided an option for taxation of LTCG as under:

(a) LTCG tax @ flat 12.5% without the option of Indexation, or

(b) LTCG tax @ flat 20% without the option of Indexation for properties acquired before 23/07/2024

Up-to-date Cost Inflation Indexation Chart / Table from FY 2001-02 to FY 2025-26

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