CBDT Notifies CII for FY2026-27; Indexation Option Remains

CBDT notified Cost Inflation Index (CII) at 384 for FY2026-27 for calculating indexed cost on eligible long-term capital gains.

Budget 2024 removed indexation for most assets, but resident individuals and HUFs selling land or building acquired before the cut-off and transferred on or after 23 July 2024 can still choose between old and new regimes.

Taxpayers with transitional provisions can compute tax under both methods and select the one with lower liability.

Indexation often benefits assets held long-term as it adjusts purchase price for inflation, reducing taxable gains and potential tax under the old regime.

The choice between regimes should be based on actual tax calculation, not just the tax rate, considering holding period and inflation impact.