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Knews Desk- If you are planning to sell your old property, land, gold or any other long-term capital asset in the financial year 2026-27, then there is relief news for you. Central Board of Direct Taxes (CBDT) Cost Inflation Index (CII) by increasing 376 to 384 Is done. This change has been made keeping in mind the impact of inflation and may reduce the tax burden while calculating Long-Term Capital Gain (LTCG) in eligible cases. Cost Inflation Index is an index that is used to index the purchase cost of a property as per inflation. Its objective is to ensure that tax is levied only on real gains and not just on prices increased due to inflation. Every year CBDT notifies this index under the Income Tax Act, 1961.

CII data in financial year 2025-26 376 was, which now 384 for FY 2026-27 Has been done. This will directly benefit those taxpayers who are selling long-term capital assets on which the benefit of indexation is available under the existing tax rules. As the index increases, the indexed purchase cost of the property increases, which can reduce taxable capital gains and consequently reduce tax liability. The benefit of the cost inflation index is primarily available on eligible long-term capital assets. These may include real estate (houses, flats, plots), gold and other jewellery, and certain categories of securities where existing tax provisions permit indexation. However, on which assets this benefit will be available depends on the income tax rules in force at that time.

The definition of long-term capital asset also varies according to the type of asset. Generally, real estate and unlisted shares are considered long-term assets if held for more than 24 months. For listed securities, this period is usually 12 months, while for many other capital assets a holding period of 36 months may apply. For example, if a person purchased an asset several years ago and is now selling it, the purchase price is considered adjusted for inflation through indexation. This can reduce the difference between the selling price and the adjusted purchase price, thereby reducing long-term capital gains and paying less tax.

However, it is important to understand that The benefit of indexation is not available to every asset and every transaction. In recent years, the government has made changes to some rules to capital gains tax. Therefore, this benefit will depend on the type of your property, the date of its purchase and the tax provisions applicable at that time. Tax experts believe that in cases where indexation is applicable, the new CII has brought relief to taxpayers. If you are planning to sell any long-term asset this financial year, consider the new asset before calculating capital gains. CII 384 It would be better to use it correctly and seek advice from a tax expert if necessary. With this you will be able to correctly assess your tax liability as per the existing rules.