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Cost Inflation Index Calculator India — FY 2025-26

Calculate the indexed cost of your property for capital gains tax using CBDT's Cost Inflation Index (CII). Compare old rule (20% LTCG with indexation) vs new rule (12.5% without indexation) under Finance Act 2024. Full CII table from FY 2001-02 to FY 2025-26.

Financial year when you bought the property
Original cost of the property (including stamp duty, registration)
Financial year when you sold or plan to sell

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How to Use This Calculator

Indexed Cost tab

Select your year of purchase and year of sale, then enter the original purchase price. The calculator shows the CII values for both years, the inflation multiplier, and the indexed cost of acquisition. Use this to determine your cost base for computing long-term capital gains on property.

Old vs New LTCG tab

Enter your property details along with the sale price. The calculator compares two options available for property purchased before 23 July 2024: 20% LTCG with indexation (old rule) vs 12.5% LTCG without indexation (new rule under Finance Act 2024). It tells you which option results in lower tax and how much you save.

CII Lookup Table tab

Browse the complete CII table from FY 2001-02 to FY 2025-26. Select any two financial years to see the inflation multiplier between them. The table also shows an example of how &rupee;10 lakh gets indexed between the selected years.

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The Formula

The indexed cost of acquisition is calculated using the Cost Inflation Index (CII) published by CBDT:

Indexed Cost of Acquisition:
Indexed Cost = (CII of year of sale / CII of year of purchase) × Purchase Price

Where:
CII = Cost Inflation Index (base year FY 2001-02 = 100)
Purchase Price = Original cost of acquisition including stamp duty and registration

Capital Gains (with indexation):
LTCG = Sale Price − Indexed Cost of Acquisition
Tax (old rule) = 20% × LTCG

Capital Gains (without indexation):
LTCG = Sale Price − Actual Purchase Price
Tax (new rule) = 12.5% × LTCG

Finance Act 2024 change:
Property purchased before 23 Jul 2024: taxpayer can choose old or new rule (whichever gives lower tax)
Property purchased on or after 23 Jul 2024: only new rule (12.5% without indexation)

Surcharge and health & education cess (4%) apply on top of the tax computed above. The effective tax rate may be slightly higher depending on your total income level.

Example

Rahul — sells flat bought in 2013 for &rupee;30 lakh, now selling for &rupee;80 lakh in FY 2025-26

Rahul purchased a flat in Mumbai in FY 2012-13 for &rupee;30,00,000 (including stamp duty). He is selling it in FY 2025-26 for &rupee;80,00,000. Since the property was bought before 23 Jul 2024, he can choose between old and new LTCG rules.

Step 1: Compute indexed cost

CII of FY 2012-13 (purchase)200
CII of FY 2025-26 (sale)376
Inflation multiplier376/200 = 1.88x
Indexed cost&rupee;56,40,000

Step 2: Old rule (20% with indexation)

Capital gains&rupee;80,00,000 − &rupee;56,40,000 = &rupee;23,60,000
LTCG tax @ 20%&rupee;4,72,000

Step 3: New rule (12.5% without indexation)

Capital gains&rupee;80,00,000 − &rupee;30,00,000 = &rupee;50,00,000
LTCG tax @ 12.5%&rupee;6,25,000

Step 4: Which rule wins?

Old rule tax&rupee;4,72,000
New rule tax&rupee;6,25,000
Better optionOld rule (20% with indexation)
Tax saving&rupee;1,53,000

Rahul saves &rupee;1,53,000 by choosing the old rule with indexation. The longer the holding period and the higher the inflation, the more likely the old rule with indexation wins.

FAQ

Cost Inflation Index (CII) is a number published every year by the Central Board of Direct Taxes (CBDT) to account for inflation when computing long-term capital gains tax. It is used to increase your cost of acquisition in proportion to inflation, thereby reducing your taxable capital gains. The base year is FY 2001-02 with CII = 100. For FY 2025-26, the CII is 376 (CBDT Notification 70/2025), meaning prices have risen approximately 3.76 times since FY 2001-02 according to the index.
Indexation increases your purchase cost by the inflation factor, which reduces the taxable capital gain. For example, if you bought a property for &rupee;30 lakh in FY 2012-13 (CII 200) and sell in FY 2025-26 (CII 376), your indexed cost becomes &rupee;30 lakh x (376/200) = &rupee;56.4 lakh. So instead of paying tax on the difference between sale price and &rupee;30 lakh, you pay tax on the difference between sale price and &rupee;56.4 lakh — a much smaller amount.
The Finance (No. 2) Act, 2024 (effective 23 July 2024) made a major change: indexation benefit was removed for all asset classes. However, after public backlash, the government provided relief for immovable property purchased before 23 July 2024. Such property owners can choose between: (1) old rule — 20% LTCG with indexation, or (2) new rule — 12.5% LTCG without indexation. For property purchased on or after 23 July 2024, only the new rule (12.5% flat) applies. For all other assets (gold, debt mutual funds, unlisted shares), the new 12.5% rate without indexation applies universally.
The old rule (20% with indexation) generally wins when: (1) you held the property for a long period (10+ years), as inflation compounds significantly, (2) the property price appreciation is moderate (2-3x), and (3) CII has grown substantially between purchase and sale years. The new rule (12.5% without indexation) generally wins when: (1) the holding period is short (3-5 years), (2) the property price has risen sharply (5x+), or (3) inflation (CII growth) was relatively low during the holding period. Use the "Old vs New LTCG" tab to compare both for your exact scenario.
The CII for FY 2025-26 is 376 (CBDT Notification 70/2025 dated 01-07-2025). The CII increased from 363 (FY 2024-25) to 376 (FY 2025-26), reflecting inflation of approximately 3.6% as measured by the index. Note that the CII does not directly mirror CPI or WPI inflation — it uses a separate methodology defined under Section 48 of the Income Tax Act.

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