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Cost Inflation Index (CII) Calculator with Improvement Indexation

Compute indexed cost of acquisition and improvement for capital gains — FY 2024-25 CII = 363

Applies to: FY 2025-26 (AY 2026-27) · Last reviewed: 2026-08-05 · Sources cited in tool footer

How it works

The calculator applies the CII for the acquisition year and, separately, the CII for the improvement year. It then compares the configured post-23 July 2024 options where the property grandfathering condition is selected.

FAQs

What is the CII formula?

Indexed Cost = Actual Cost × CII(sale year) / CII(purchase year or 2001-02, whichever is later)

How is improvement indexed?

Improvement cost is indexed using CII of the year in which the improvement was made (not the year of original purchase). Indexed improvement = Improvement Cost × CII(sale year) / CII(improvement year)

What is the FY 2024-25 CII?

CBDT Notification 44/2024-IT dated 24 May 2024 (F.No. 370142/17/2024-TPL) — CII for FY 2024-25 = 363

When does the grandfathering option apply?

For land or building (or both) acquired BEFORE 23 July 2024: taxpayer may compute tax under BOTH methods — (a) 12.5% without indexation OR (b) 20% with indexation — and pay whichever results in LOWER tax

How are inherited assets handled?

For inherited assets: period of holding of original owner is included. Cost of original owner is the cost of acquisition. CII is applied from the year of original acquisition (or 2001-02 if earlier).

Statutory basis

Section 48 read with Explanation (v), Section 49 Income Tax Act 1961; CII notified by CBDT u/s 48 Explanation annually

VERIFY: FA 2026 budget changes to LTCG rates or CII table — check CBDT notification for FY 2025-26 CII (not yet notified as of Aug 2026 assumed); confirm holdingPeriod thresholds for all asset classes under ITA 2025 transition Whether unlisted shares acquired before 23 Jul 2024 also get the dual-option grandfathering — legal position uncertain; check FA 2024 text and CBDT FAQs before computing