The Central Board of Direct Taxes (CBDT) has increased the Cost Inflation Index (CII) for the financial year 2026-27 to 384, according to a tax update reported by NDTV. The new index value is higher than the CII of 376 for FY2025-26. The Cost Inflation Index is used under India’s Income-tax provisions to adjust the purchase price of certain long-term assets for inflation when computing capital gains tax. By raising the CII, the indexed cost of acquisition can increase, which can reduce the taxable capital gain in cases where the asset qualifies for indexation benefits. The update is relevant for taxpayers calculating capital gains on property sold after holding the asset for the period that qualifies as “long-term” under the income-tax rules. The change applies for computations made for the tax year corresponding to FY2026-27 and may affect how individuals and investors estimate their tax liability on property transactions during that period.