What is Cost Inflation Index?
The Cost Inflation Index is a numerical value used to adjust the purchase price of a capital asset to account for inflation when computing capital gains. The base year changed from 1981-82 to 2001-02 in Finance Act 2017. For assets purchased before 2001-02, indexation benefit is available only from 2001-02 onwards.
Capital Gains Indexation Calculator
Calculate indexed cost of acquisition for long-term capital gains. The indexed cost is calculated using the formula: Purchase Cost x (CII of Sale Year / CII of Purchase Year)
Indexed Cost = Purchase Cost x (CIIsale / CIIpurchase)
This is used to compute long-term capital gain as: Sale Price - Indexed Cost
CII Reference Table
All CII values from the base year 2001-02 (CII = 100) to latest available financial year. Values are official as per Ministry of Finance notification.
| Financial Year | CII Value |
|---|---|
| 2001-02 Base Year | 100 |
| 2002-03 | 105 |
| 2003-04 | 109 |
| 2004-05 | 113 |
| 2005-06 | 117 |
| 2006-07 | 122 |
| 2007-08 | 129 |
| 2008-09 | 137 |
| 2009-10 | 148 |
| 2010-11 | 167 |
| 2011-12 | 184 |
| 2012-13 | 200 |
| 2013-14 | 220 |
| 2014-15 | 240 |
| 2015-16 | 254 |
| 2016-17 | 264 |
| 2017-18 | 272 |
| 2018-19 | 280 |
| 2019-20 | 289 |
| 2020-21 | 301 |
| 2021-22 | 317 |
| 2022-23 | 331 |
| 2023-24 | 348 |
| 2024-25 | 363 |
| 2025-26 | 376 |
Important: Base Year Changed in 2017
- Old Rule (until 2016-17): Base year was 1981-82 with CII = 100. Assets purchased before 1981-82 could still claim indexation benefit from 1981-82.
- New Rule (from 2017-18 onwards): Base year changed to 2001-02 with CII = 100 (Finance Act 2017). Assets purchased before 2001-02 now get indexation benefit only from 2001-02.
- Transition: For assets purchased between 1981-82 and 2001-02, benefit limited to 2001-02 onwards under new rules.
Legal Reference
Section 74 of Income Tax Act, 2025: Cost Inflation Index for determining indexed acquisition cost of capital assets. This section, along with Finance Act 2017 amendments, governs CII calculations. Always verify the latest CII notification from the Ministry of Finance before finalizing calculations.