CBDT Notifies Cost Inflation Index for FY 2025-26 at 376

The Central Board of Direct Taxes (CBDT) has formally notified the Cost Inflation Index (CII) for the Financial Year 2025-26 at 376. This crucial index helps taxpayers compute long-term capital gains by adjusting the acquisition cost of assets for inflation. Effective from April 1, 2026, for the Assessment Year 2026-27, this CII will reduce taxable gains, thereby lowering tax liabilities. While recent amendments have limited indexation benefits for some assets, it remains vital for properties acquired before July 23, 2024, providing significant relief to those selling such long-term assets and ensuring fairness in capital gains taxation by accounting for inflationary effects over time.