Cost Inflation Index For FY 2025-26 with Smarter Tax Calculations

Mitali | Last updated: 19 August 2025

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The Cost Inflation Index (CII) for the Financial Year 2025-26 has been notified as 376. This index is crucial for calculating long-term capital gains on assets like property, unlisted shares, and debt mutual funds by adjusting their acquisition cost for inflation. By applying indexation, taxpayers can reduce their taxable capital gains, leading to more accurate, inflation-adjusted profit calculations. The benefit of CII is not applicable to listed equity shares or equity mutual funds.

Cost Inflation Index (CII) is used to estimate the yearly increase in an asset’s price due to inflation. Indexation is a process by which the cost of acquisition is adjusted against inflationary rise in the value of asset. Recent Update On 1st July 2025, Central Board of Direct Taxes (CBDT

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About the Author

Mitali

Finance Professional

I write about Income Tax, GST, TDS, RBI updates, government schemes, and personal finance in India. My focus is on simplifying complex tax and compliance topics into easy-to-understand guides that help readers stay updated with the latest financial rules, investment options, and regulatory changes.

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Cost Inflation Index For FY 2025-26 with Smarter Tax Calculations

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