The Central Board of Direct Taxes (CBDT) has announced the Cost Inflation Index (CII) for the Financial Year 2026-27, setting it at 384. This notification, issued by the Ministry of Finance, provides crucial clarity for taxpayers and tax professionals regarding the calculation of capital gains under the new Income-tax Act, 2025. The CII is essential for adjusting the purchase cost of assets for inflation when determining long-term capital gains.
The Central Board of Direct Taxes (CBDT) has officially notified the Cost Inflation Index (CII) for the Financial Year 2026-27 at 384, providing clarity for taxpayers and professionals dealing with capital gains computations under the new Income-tax Act, 2025. The notification was issued by the Ministry of Finance on 15 July 2026 through Notification No. S.O. 3889(E).
Cost Inflation Index for FY 2026-27
According to the notification, the Cost Inflation Index specified for the Financial Year
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FAQ :
The Cost Inflation Index (CII) for the Financial Year 2026-27 has been notified as 384 by the CBDT.
The notified Cost Inflation Index for FY 2026-27 is effective from 1 April 2026.
The CII is notified under Section 72(8)(a) of the Income-tax Act, 2025.
The Cost Inflation Index is used to adjust the purchase cost of certain capital assets for inflation when calculating long-term capital gains.
Tax professionals, chartered accountants, and taxpayers should take note of the newly notified index for evaluating transactions and understanding inflation adjustments.