📊 Capital Gains Tax — TAXAJ
CII-based indexed cost calculation, LTCG tax filing, ITR-2/3
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Cost Inflation Index
(CII) Calculator
Indexed Cost · LTCG · Tax Saving on Property, Gold & Debt MF
Calculate the Indexed Cost of Acquisition using CBDT's notified Cost Inflation Index (CII) — reduce your Long-Term Capital Gains (LTCG) tax on property, land, gold, jewellery, and debt mutual funds. CII for FY 2025-26 is 363.
Calculate Indexed Cost of Acquisition & LTCG Tax
Enter your asset's purchase price, year of purchase, and year of sale. The calculator applies CBDT's official CII values to compute your indexed cost, capital gain after indexation, and the final LTCG tax payable — along with how much tax you save through indexation.
📊 CII / Indexed Cost of Acquisition Calculator
CBDT notified CII · Section 48 Income Tax Act · FY 2001-02 base year · Updated for FY 2025-26 (CII = 363)
ℹ️ Budget 2024 Note: Finance Act 2024 removed indexation benefit for property sold on or after July 23, 2024 — however, taxpayers can choose 12.5% LTCG without indexation OR 20% with indexation (whichever is lower) for property purchased before July 23, 2024. This calculator shows both options for comparison.
| Component | Without Indexation | With Indexation (20%) | Alt: 12.5% No Indexation |
|---|
📊 TAXAJ files ITR-2/ITR-3 with complete capital gains schedule — property, gold, debt MF, unlisted shares. Includes Form 26AS matching, Section 54/54EC/54F exemption planning, and advance tax calculation.
⚠️ This calculator uses CBDT's officially notified CII values. Tax calculations are indicative — surcharge slabs depend on total income. Consult TAXAJ CA for final tax planning and ITR filing. Section 50C/56(2)(x) provisions may override sale price for property.
Complete Cost Inflation Index Table — FY 2001-02 to FY 2025-26
The Central Board of Direct Taxes (CBDT) notifies the Cost Inflation Index every year under Section 48 of the Income Tax Act. Base year is FY 2001-02 (CII = 100). These are the official values used for computing indexed cost of acquisition.
| Financial Year | CII Value | Increase over Prior Year | Inflation % |
|---|
Source: CBDT Notifications under Section 48 of Income Tax Act, 1961. CII for FY 2025-26 is 363 as notified. * Verify at incometaxindia.gov.in before filing.
Everything You Need to Know About CII & Indexed Cost of Acquisition
📐 What is CII and How is it Used?
Cost Inflation Index (CII) adjusts the purchase price of a capital asset for inflation over the holding period. Formula: Indexed Cost = (Original Cost × CII of Sale Year) ÷ CII of Purchase Year. This inflated cost is deducted from the sale price to arrive at LTCG. Since the cost is higher after indexation, the capital gain — and therefore tax — is lower. Benefit: reduces LTCG tax by accounting for the real erosion of money value over time.
🏠 Assets Eligible for Indexation Benefit
Indexation benefit under Section 48 applies to: Property (land, building, flat, commercial space), Gold & jewellery, Debt mutual funds (purchased before April 1, 2023), Unlisted shares, Bonds (non-capital indexed), and other long-term capital assets. NOT eligible: Equity shares (listed), equity mutual funds, ULIP gains, specified bonds. Budget 2024 changed property indexation — check Budget 2024 tab.
📅 Holding Period for LTCG (Long Term)
Asset must be held for a minimum period to qualify as Long-Term Capital Asset: Property / Land / Building: >24 months (2 years). Listed Equity / Equity MF: >12 months. Debt MF / Gold / Unlisted Shares: >24 months. Listed Bonds / Debentures: >12 months. If sold before these periods, it's Short-Term Capital Gain (STCG) — taxed at slab rate (no indexation benefit).
🏦 Budget 2024 — Indexation Change for Property
Finance Act 2024 (effective July 23, 2024) brought major changes: Option 1: 12.5% LTCG tax without indexation (new default). Option 2: 20% LTCG tax with indexation (available for property purchased BEFORE July 23, 2024). Taxpayers can choose whichever results in lower tax. For properties held very long (20+ years), indexation at 20% often still beats 12.5% without indexation. For recent purchases (5-10 years), 12.5% without indexation may be better. This calculator shows both.
💰 Cost of Improvement — Also Indexable
Capital expenditure incurred after purchase (cost of improvement) is also eligible for CII indexation. The CII of the year in which improvement was made is used (not the purchase year). Examples of improvement cost: additional construction, floor addition, major renovation. NOT eligible: routine repairs, maintenance, painting, plumbing repairs. Improvement cost reduces capital gains in addition to indexed original cost — keep receipts and invoices.
📋 Exemptions to Save Capital Gains Tax
Even after computing LTCG, you can save tax via reinvestment exemptions: Section 54: Invest LTCG from residential house in another residential house (2 years) or construct (3 years). Section 54EC: Invest up to ₹50 lakh in NHAI/REC bonds within 6 months of sale. Section 54F: For non-residential assets — invest entire sale proceeds in residential house. TAXAJ helps plan the optimum exemption strategy before the sale is completed.
CII & Capital Gains — Frequently Asked Questions
Capital Gains Tax Planning by TAXAJ
Expert CA assistance for property sale, gold, debt MF capital gains — indexed cost computation, Section 54/54EC/54F exemption planning, advance tax, and ITR-2/3 filing. Pan-India.