Cost Inflation Index Chart: FY 2001-02 to FY 2026-27 (CII 384)

The Cost Inflation Index is the number the government publishes each year so that capital gains are taxed on real gain rather than on inflation. Without it, an asset held for twenty years would be taxed on the full difference between what you paid and what you sold for, even though a large part of that difference is simply the rupee losing purchasing power.

Below is the complete notified index from the base year to the current year, followed by what has changed about when you can actually use it.

Cost Inflation Index chart: FY 2001-02 to FY 2026-27

The base year is 2001-02, with an index of 100.

Financial year	Cost Inflation Index
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 index for FY 2025-26 was notified at 376 by Notification No. 70/2025 dated 1 July 2025. The index for FY 2026-27 was notified at 384 by Notification S.O. 3889(E) dated 15 July 2026, under Section 72(8)(a) of the Income-tax Act, 2025, applicable to tax year 2026-27 beginning 1 April 2026 and subsequent tax years.

Important: indexation is no longer available for most assets

This is the part most older articles have not caught up with, and getting it wrong is expensive.

The Finance (No. 2) Act, 2024 withdrew the indexation benefit for computing long-term capital gains with effect from 23 July 2024. For transfers on or after that date, long-term capital gains are generally computed without indexation and taxed at the lower flat rate that replaced the earlier indexed regime.

One significant exception survives. A resident individual or Hindu Undivided Family transferring land or building, or both, that was acquired before 23 July 2024 may still compute the gain with indexation, and pay tax under whichever of the two computations is more favourable. This is why the index continues to be notified every year and why the table above still matters.

Indexation also remains relevant for any transfer that took place before 23 July 2024, which includes assessments, revisions and appeals still open for earlier years.

How indexation is applied

The indexed cost of acquisition is calculated as:

Indexed cost of acquisition = Cost of acquisition × CII of the year of transfer ÷ CII of the year of acquisition

The same formula applies to the cost of improvement, using the index of the year in which the improvement was incurred.

Worked example

A resident individual buys a residential plot in FY 2010-11 for Rs 20,00,000 and sells it in FY 2026-27 for Rs 90,00,000. The plot was acquired before 23 July 2024 and is land, so the indexed computation is available to them.

• CII for FY 2010-11: 167
• CII for FY 2026-27: 384
• Indexed cost of acquisition = 20,00,000 × 384 ÷ 167 = Rs 45,98,802
• Long-term capital gain with indexation = 90,00,000 − 45,98,802 = Rs 44,01,198

Without indexation, the gain would be Rs 70,00,000. Which computation produces the lower tax depends on the applicable rate under each method, which is why both have to be worked out rather than assumed.

Assets acquired before 1 April 2001

Where a capital asset was acquired before 1 April 2001, the taxpayer may substitute the fair market value as on 1 April 2001 for the actual cost, and index from the base year. For land and building, that substituted value cannot exceed the stamp duty value as on 1 April 2001. A registered valuer report as at that date is normally required to support the figure, and it is worth obtaining before the transaction rather than after a notice.

Points that trip people up

• The year of transfer, not the year of payment. The index applied is that of the financial year in which the transfer takes place.
• Inherited and gifted assets. The holding period of the previous owner is included, and the cost is that of the previous owner. Which year index applies to inherited property has been litigated; take advice on the specific facts.
• Improvement costs need evidence. Indexation on improvement is routinely disallowed where there are no bills, no bank trail and no approved plans.
• Short-term gains never get indexation. The benefit applies only where the asset qualifies as long-term.
• Equity shares and equity mutual funds do not get indexation and are taxed under their own regime.

Where this matters in practice

Property sales are where the index does the most work, and where the largest amounts turn on getting the computation right. Two situations are worth flagging.

If you are a non-resident selling Indian property, tax is deducted on the whole sale consideration rather than on the gain. Computing the gain properly and applying for a lower deduction certificate is usually the difference between a manageable deduction and a very large sum locked up for a year. See our note on the lower or nil TDS certificate under Section 395.

If you are a resident selling land or a building acquired before 23 July 2024, both computations must be run before the return is filed, because you are entitled to the better of the two.

Get the computation checked

We compute capital gains, prepare the supporting valuation and cost records, and file the return. For non-resident sellers we also handle the lower deduction certificate and the repatriation side. Start at income tax filing, or NRI tax filing if you are selling from outside India, and book a consultation before you sign the sale agreement rather than after.

Index values above are as notified by the Central Board of Direct Taxes. This article is general information and not advice on a specific transaction. The treatment of a particular sale depends on the asset, the dates and your residential status.