CII Hits 384 in FY27: How It Cuts Your Tax Bill

The government has set the Cost Inflation Index at 384 for FY2026-27. This number helps you reduce your taxable profit when you sell property, gold, or debt funds held long-term — so you pay less capital gains tax.

Here's what happened: CBDT officially notified the Cost Inflation Index (CII) as 384 for Financial Year 2026-27, up from 363 in FY2025-26.. CII is used to inflate the original purchase price of an asset, reducing your taxable long-term capital gain on eligible assets like property and gold.. Indexation benefit applies to assets where LTCG is taxed at 20% with indexation — primarily immovable property purchased before July 23, 2024, and physical gold..

What you should do: Calculate your indexed cost before selling any property or physical gold — use the formula: (CII of sale year ÷ CII of purchase year) × original cost.. Check which assets still qualify for indexation benefit — property bought before July 23, 2024 can still use indexation under the old 20% LTCG route.. Consult a CA or use an online LTCG calculator before filing ITR if you sold property this year — the tax saving can run into lakhs..

If you inherited property or received it as a gift, use the CII of the year you actually received it — not the original owner's purchase year — to calculate your indexed cost. This often lowers your tax significantly.