New Delhi, 16 July (H.S.):

The Income Tax Department has increased the Cost Inflation Index (CII) for the financial year 2026-27 to facilitate the calculation of long-term capital gains arising from the sale of immovable property, securities, and jewellery.

According to a notification issued by the Central Board of Direct Taxes (CBDT), the Cost Inflation Index for FY 2026-27 has been fixed at 384, up from 376 in the previous financial year, 2025-26.

The department stated that the Cost Inflation Index is notified every financial year under the provisions of the Income Tax Act, 1961. It is used to determine the indexed cost of acquisition while calculating capital gains on the transfer of capital assets, thereby adjusting the purchase cost for inflation.

Generally, a capital asset must be held for more than 36 months to qualify as a long-term capital asset. However, for immovable property and unlisted shares, the required holding period is 24 months, while for listed securities, the qualifying period is 12 months.

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Hindusthan Samachar / Jun Sarkar