How does CII 384 for FY 2026-27 change your indexed cost?

The Cost Inflation Index for FY 2026-27 is 384, and it still matters for one specific tax comparison.

CII 384 applies to FY 2026-27 only. Your indexed cost is the purchase cost multiplied by 384 divided by the index of your purchase year. It matters only for the grandfathered 20%-with-indexation comparison available to resident individuals and HUFs who bought before 23 July 2024.

What exactly does CII 384 apply to?

The Cost Inflation Index of 384 was notified by CBDT Notification No. 85/2026 dated 15 July 2026, under section 72(8)(a) of the Income-tax Act 2025. It applies to tax year 2026-27, that is 1 April 2026 to 31 March 2027. It does not belong to any earlier year. For reference, FY 2024-25 is 363, FY 2025-26 is 376, and the base year FY 2001-02 is 100.

How is the indexed cost worked out?

The formula is simple. Indexed cost = cost x (CII of the year of transfer / CII of the year of acquisition, or FY 2001-02 if that is later).

Take a flat held since FY 2001-02, where the index is 100, and sold in FY 2026-27, where the index is 384. The cost is multiplied by 3.84 times. So a cost of Rs 10 lakh becomes an indexed cost of Rs 38.4 lakh. If your purchase year sits between the two, the multiplier is smaller, and our capital gains property calculator works it out on your own figures rather than a rule of thumb.

Does indexation still reduce my tax?

Not directly. For transfers on or after 23 July 2024, long-term capital gains on land or building are taxed at 12.5% without indexation under Section 112 (Section 197(1)(b) of the Income-tax Act 2025). The taxable gain remains the unindexed gain.

Indexation now survives only as a cap. A resident individual or resident HUF, for property acquired before 23 July 2024, pays the lower of 12.5% without indexation or 20% with indexation. This grandfathering is not available to NRIs, companies, firms, LLPs or AOP/BOI. Long-term here means held for more than 24 months.

Which of the two computations wins depends entirely on your purchase year and price. Run both in the calculator, read our note on capital gains on redevelopment, and have a chartered accountant confirm the final figure before you file.

Work it out for your own society

Enter your purchase year, cost and sale price to see both computations side by side and the lower tax figure.

Open the Capital Gains Property Calculator

Common questions

Is CII 384 the index for FY 2025-26?

No. CII 384 applies to tax year 2026-27, that is 1 April 2026 to 31 March 2027. It was notified by CBDT Notification No. 85/2026 dated 15 July 2026. The index for FY 2025-26 is 376, and for FY 2024-25 it is 363. Using the wrong year's index will give you the wrong indexed cost and the wrong comparison figure.

Can an NRI use indexation on a Mumbai flat sold in FY 2026-27?

No. The grandfathered option of paying the lower of 12.5% without indexation or 20% with indexation is available only to a resident individual or resident HUF, and only for land or building acquired before 23 July 2024. NRIs, companies, firms, LLPs and AOP/BOI are outside it and pay 12.5% without indexation. An NRI seller should take a chartered accountant's advice early.

Which purchase year index do I use if I bought before 2001?

If the property was acquired before FY 2001-02, you use the base year index of 100 for FY 2001-02, not an earlier figure. The indexed cost is then the relevant cost multiplied by 384 divided by 100 for a FY 2026-27 sale. Valuations for pre-2001 properties are fact-specific and often disputed, so have a chartered accountant review the working.