CBDT Notifies Cost Inflation Index (CII) at 376 for FY 2025–26
Notification No. 47/2025 | Dated 28 June 2025
Applicable for Assessment Year 2026–27 (i.e., for asset transfers during FY 2025–26)
The Central Board of Direct Taxes (CBDT) has notified the Cost Inflation Index (CII) at 376 for the Financial Year 2025–26, under Rule 48 of the Income-tax Rules, 1962, vide Notification No. 47/2025 dated 28 June 2025.
The CII is notified annually and is used for computing the indexed cost of acquisition and improvement of long-term capital assets under Section 48 of the Income-tax Act, 1961. By adjusting the cost of assets for inflation, indexation ensures that long-term capital gains (LTCG) reflect real economic appreciation, not merely nominal increases.
Relevance for FY 2025–26
This year’s CII notification holds particular importance in light of the capital gains regime changes introduced by the Finance Act, 2024, effective from 23rd July 2024:
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For land or building acquired before 23rd July 2024, taxpayers have the option to:
▪️ Pay tax at 20% with indexation (using CII = 376), or
▪️ Opt for 12.5% flat rate without indexation -
For property acquired on or after 23rd July 2024, the LTCG is taxed at 12.5% flat, and indexation does not apply
-
For other capital assets (e.g. unlisted shares, gold, bonds, legacy debt mutual funds), indexation remains available, subject to holding period and acquisition date
CII Table Snapshot (Base Year: 2001–02)
| Financial Year | Cost Inflation Index (CII) |
|---|---|
| 2001–02 (Base Year) | 100 |
| 2010–11 | 167 |
| 2020–21 | 301 |
| 2023–24 | 348 |
| 2024–25 | 363 |
| 2025–26 | 376 |
