Overview
- The Central Board of Direct Taxes issued a gazette notification setting the Cost Inflation Index at 384, and the notification makes the figure effective from April 1, 2026.
- The new index is up from 376 in the prior year and raises the inflation-adjusted purchase cost used to compute long‑term capital gains, which can lower taxable gains for eligible sales.
- Indexed cost calculations under the new number will apply to sales of assets such as immovable property, securities and jewellery where indexation is allowed by law.
- Tax advisers note the annual notification reduces uncertainty in calculations, and some taxpayers who still qualify for indexation under the post‑2024 rules may see smaller tax bills when they sell eligible assets.
- The CII is prescribed under Section 48 of the Income Tax Act with a 2001–02 base of 100, and taxpayers planning sales should factor the 384 index into comparisons between the older indexation regime and the newer capital gains framework.