The Central Board of Direct Taxes (CBDT), via Notification No. 70/2025 dated July 1, 2025, has officially notified the Cost Inflation Index (CII) for the Financial Year 2025-26 as "376". This indexation is crucial for taxpayers while computing long-term capital gains under the Income-tax Act, 1961.
The notification, issued in exercise of powers under clause (v) of the Explanation to Section 48 of the Act, amends the earlier notification S.O. 1790(E) dated June 5, 2017. The latest amendment inserts serial number 25 in the cost inflation index table, specifying the index for the year 2025-26.
This CII of 376 will be applicable from April 1, 2026, and shall apply for Assessment Year 2026-27 and onwards. It helps taxpayers adjust the purchase price of long-term capital assets for inflation, thereby reducing the taxable capital gains amount.
This update follows the previous index value of 363 for FY 2024-25, notified through S.O. 2103(E) dated May 24, 2024.
The CII series is used widely for income tax planning, capital gains calculations, and asset indexing in India.
Key Highlights
- CII for FY 2025-26: 376
- Effective Date: April 1, 2026
- Applicable for: AY 2026-27 onwards
- Previous CII (FY 2024-25): 363
Official copy of the notification has been attached
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