Archive · 2 Jul 2025
India's Income Tax Dept. Sets CII for LTCG Calculation
The government has set a new number, 376, called the Cost Inflation Index (CII) to help calculate taxes on profits from selling assets like houses.
This number helps adjust for inflation, so people pay less tax because the government understands that some of the profit is due to rising prices, not real gains.
This applies to assets sold in the coming financial year.
People selling homes bought before a certain date can choose how to calculate their tax.
Income Tax Department announced the Cost Inflation Index (CII) for FY25-26, set at 376.
The CII is used to adjust the purchase price of long-term assets for inflation.
It helps taxpayers manage taxable profits and reduce tax liabilities.
Homeowners selling properties acquired before July 22, 2024, can choose between old and new tax rules.
The CII update of 376 becomes effective on April 1, 2026, impacting LTCG calculations.
- Who
- Income Tax Department
- What
- Income Tax Department announced a Cost Inflation Index (CII) of 376.
- When
- Announced on July 1, 2025, and effective April 1, 2026.
- Where
- India
- Why
- To adjust for inflation in the calculation of long-term capital gains (LTCG).
Taxpayers
Income Tax Department
Tax Relief
Taxpayers
Benefit from inflation-adjusted asset valuations.
Income Tax Department
N/A
- CII Value
- 376
- Effective Date
- April 1, 2026
- Applicable For
- FY25-26
- Purpose
- Calculate LTCG
- Formula for Inflation-Adjusted Price
- (CII of the year of sale / CII of the year of purchase) * Actual purchase price of the asset
