Cost Inflation Index for FY 2026-27 under Income Tax

Cost Inflation Index for Financial Year 2026-27

Introduction

The Cost Inflation Index for Financial Year 2026-27 is an important reference for taxpayers dealing with capital gains where indexation is applicable. The Cost Inflation Index, commonly known as CII, helps adjust the cost of eligible capital assets to account for inflation over the years. For FY 2026-27, the government has notified the CII at 384.

 

 

Latest Notification Update for FY 2026-27

The Central Government has notified the Cost Inflation Index (CII) for Financial Year 2026-27 at 384 through Notification No. 85/2026 dated 15 July 2026. The notification has been issued under Section 72(8)(a) of the Income-tax Act, 2025 and applies to Tax Year 2026-27 from 1 April 2026 and subsequent tax years.

 

Readers looking for the latest CII can refer to our complete year-wise Cost Inflation Index table.

 

The base year for the Cost Inflation Index is Financial Year 2001-02, with the CII value fixed at 100. This base year is used as the reference point for calculating the indexed cost of eligible capital assets.

 

Where the applicable tax provisions allow indexation, the CII of the year of acquisition and the CII of the year of transfer are considered for calculating the indexed cost.

 

Learn more about the Cost Inflation Index for capital gain calculation and understand its meaning, calculation, and year-wise CII values.

 

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Looking for professional tax assistance? Get in touch with Ebizfiling for support with capital gains, ITR filing, and related income tax compliances.

 

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Suggested Reads:

Cost Inflation Index for Financial Year 2025-26

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Author: steffy

Steffy Alvin is a Content Writer at Ebizfiling specializing in GST, income tax, and financial compliance content. She holds a degree in English Literature and a post-graduate qualification in Journalism and Mass Communication. She focuses on creating clear, engaging content that simplifies complex tax and financial concepts for businesses.

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