**Executive Summary**
The Ministry of Finance, via Notification S.O. 3889(E) dated July 15, 2026, has officially specified the Cost Inflation Index (CII) for the financial year 2026-27. In accordance with the Income-tax Act, 2025, the index has been set at 384. This notification is effective from April 1, 2026, and applies to the tax year 2026-27 and all subsequent years.
**Key Points / Main Content**
**Statutory Basis and Notification**
* The notification is issued by the Central Board of Direct Taxes (CBDT) under the powers conferred by section 72(8)(a) of the Income-tax Act, 2025.
* The official document is recorded under Notification No. S.O. 3889(E), dated July 15, 2026.
**Specified Cost Inflation Index**
* The Central Government has designated the Cost Inflation Index for the Financial Year 2026-27 as **384**.
* This index is used to calculate the indexed cost of acquisition/improvement for the purpose of computing capital gains.
**Timeline and Applicability**
* The notification becomes operational starting from the 1st day of April, 2026.
* It is applicable for the tax year 2026-27 and subsequent tax years.
**Impact Analysis**
**Taxpayers (Individuals and Entities)**
**Impact**
Taxpayers selling long-term capital assets will be affected as they must use this specific index to adjust the purchase price of assets for inflation, which directly influences their capital gains tax liability.
**Action Required**
Taxpayers must apply the index value of 384 for all capital gains tax computations pertaining to the financial year 2026-27.
**Tax Professionals and Chartered Accountants**
**Impact**
Professionals responsible for tax compliance and planning must integrate this new figure into their calculations to ensure accuracy for their clients.
**Action Required**
Update tax calculation software, internal accounting templates, and advisory documentation to reflect the notified CII of 384 for the relevant period.
**Income Tax Department**
**Impact**
The department is impacted as this serves as the official legal benchmark for assessing and verifying tax returns involving capital gains for the 2026-27 period.
**Action Required**
Incorporate the notified index into the automated tax processing systems and assessment protocols for the 2026-27 tax year.
Key Entities Referenced
Income-tax Act, 2025: The primary legislation under which the Central Government exercises powers to specify the Cost Inflation Index.
Cost Inflation Index: A specific numerical index (set at 384 for FY 2026-27) used to adjust the purchase price of assets for inflation to calculate long-term capital gains.
Central Board of Direct Taxes (CBDT): The regulatory body under the Ministry of Finance responsible for administering direct tax policies and issuing this notification.
Section 72(8)(a): The specific provision of the Income-tax Act, 2025, that empowers the Central Government to notify the Cost Inflation Index.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-15072026-274522
CG-DxLx-xEG-I1D5H0x7x2x0 26-274522
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 3726] नई दिल्ली, बधु िार , िुलाई 15, 2026/आर्षाढ 24, 1948
No. 3726] NEW DELHI, WEDNESDAY, JULY 15, 2026/ASHADHA 24, 1948
जित्त मत्रं ालय
(रािस्ट्ि जिभाग)
(केंद्रीय प्रत्यक्ष कर बोडड)
अजधसचू ना
नई दिल्ली, 15 िुलाई, 2026
(आय-कर)
का.आ. 3889(अ).— केंद्रीय सरकार, आय-कर अजधजनयम, 2025 (2025 का 30) की धारा 72 की उपधारा (8)
के खंड (क) द्वारा प्रित्त िजियों का प्रयोग करत ेहुए, उि सारणी के स्ट्तंभ (2) म ेंतत्स्ट्थानी प्रजिजि म ेंउजल्लजखत जित्तीय िर्षों
के जलए नीच े िी गई सारणी के स्ट्तंभ (3) म ें उजल्लजखत अनुसार लागत मद्रु ास्ट्फीजत सूचक जिजनर्िडि करती ह,ै अथाडत् :-
सारणी
क्रम सं. जित्तीय िर्षड लागत मुद्रास्ट्फीजत सूचक
(1) (2) (3)
1. 2026-27 384.
5403 GI/2026 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
2. यह अजधसूचना 1 अप्रैल, 2026 से प्रारंभ होने िाल ेकर िर्षड 2026-27 को तथा पश्चात्िती कर िर्षों पर लाग ूहोगी ।
[फा. स.ं 85/2026 /फा.सं. 370149/112/2026- टीपीएल]
कृजत्तका िैन, अिर सजचि
MINISTRY OF FINANCE
(Department Of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 15th July, 2026
(INCOME-TAX)
S.O. 3889(E).— In exercise of the powers conferred by section 72(8)(a) of the Income-tax Act, 2025 (30 of
2025), the Central Government hereby specifies the Cost Inflation Index as mentioned in column (3) of the Table below
for the Financial Years mentioned in the corresponding entry in column (2) of the said Table, namely:–
TABLE
Sl. No. Financial Year Cost Inflation Index
(1) (2) (3)
1. 2026-27 384.
2. This notification shall apply to the tax year 2026-27 on and from the 1st day of April, 2026 and subsequent tax years.
[F. No. 85/2026/F.No.370149/112/2026-TPL]
KRITIKA JAIN, Under Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.