CBDT Notifies Cost Inflation Index (CII) of 384 for FY 2026–27
The Central Board of Direct Taxes (CBDT) has notified the Cost Inflation Index (CII) for Financial Year 2026–27 as 384 through a notification dated 15 July 2026.
The Cost Inflation Index is an important figure used for calculating the indexed cost of acquisition and improvement wherever indexation benefits are applicable under the Income-tax Act. Every year, CBDT notifies the revised CII to facilitate accurate capital gains computations.
Who is affected?
This notification is relevant for:
- Taxpayers reporting capital gains
- Investors selling eligible capital assets
- Businesses undertaking capital asset transactions
- Chartered Accountants and tax professionals
What should you do?
Taxpayers and professionals should:
- Update capital gains computation templates with the notified CII of 384.
- Update tax software and internal compliance systems.
- Apply the notified CII while computing eligible indexed capital gains for FY 2026–27 wherever indexation benefits are available under the Income-tax Act.
Compliance Timeline
The notified Cost Inflation Index is effective for FY 2026–27. There is no separate compliance deadline; however, taxpayers and professionals should immediately incorporate the revised CII into applicable capital gains computations.
Why this matters
Using the correct Cost Inflation Index helps ensure accurate tax calculations and reduces the risk of errors while reporting capital gains. Businesses, investors, and tax professionals should update their systems and working papers to reflect the revised CII for FY 2026–27.