CBDT Notifies Cost Inflation Index (CII) of 384 for FY 2026–27 Under the Income-tax Act, 2025:

The CBDT has notified the Cost Inflation Index (CII) at 384 for the Financial Year 2026-27 under the Income Tax Act, 2025, effective from April 2026.

Cost Inflation Index for FY 2026-27 Announced

Saloni Kumari

Jul 16, 2026

Last update on Jul 16, 2026

The Central Board of Direct Taxes (CBDT) under the Ministry of Finance (Department of Revenue) has notified the Cost Inflation Index (CII) for the Financial Year 2026-27 (Assessment Year 2027-28).

For the tax year 2026-27, the CII has been identified as 384, effective from April 01, 2026, and applicable to subsequent tax years.

The central government has made the aforementioned disclosure via a Notification No. S.O. 3889(E), dated July 15, 2026, in exercise of the powers granted 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 while calculating capital gains tax. This adjustment helps ensure that taxpayers are taxed on the real gain after considering the impact of inflation over the years.

Refer to the official notification for complete information.

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