What is the cost inflation index (CII)?
Reviewed by Ranga & Company
CII: The cost inflation index (CII) is a yearly number notified by CBDT to adjust an asset's purchase cost for inflation (indexation), which reduces the taxable long-term capital gain.
At a glance
- Base year
- 2001-02 = 100
- FY 2025-26
- 376
- Formula
- Indexed cost = Cost × CII of sale year ÷ CII of purchase year
- Who can still use it
- Resident individuals and HUFs selling land or buildings bought before 23 July 2024 (with the 20% rate)
CII by year
| Financial year | CII |
|---|---|
| 2001-02 | 100 |
| 2010-11 | 167 |
| 2012-13 | 200 |
| 2015-16 | 254 |
| 2018-19 | 280 |
| 2020-21 | 301 |
| 2022-23 | 331 |
| 2023-24 | 348 |
| 2024-25 | 363 |
| 2025-26 | 376 |
For assets bought before 1 April 2001, the cost is taken as the fair market value on 1 April 2001.
Indexation since July 2024
From 23 July 2024, long-term gains on most assets are taxed at 12.5% without indexation. Resident individuals and HUFs selling land or buildings bought before that date can still compute tax at 20% with indexation and pay whichever is lower.
Common mistakes
- Using the CII of the calendar year instead of the financial year
- Indexing the cost of property bought after 23 July 2024
Frequently asked questions
What is the CII for FY 2025-26?
376, with 2001-02 as the base year at 100.
Is indexation available on gold or mutual funds?
Not for transfers from 23 July 2024; the option is retained only for land and buildings bought before that date by resident individuals and HUFs.
How is indexed cost calculated?
Multiply the purchase cost by the CII of the year of sale and divide by the CII of the year of purchase.
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