Cost Inflation Index (CII) FY 2025-26: Latest CBDT Notification and the Indexation-Removal Context
CBDT's Cost Inflation Index for FY 2025-26 is 376, anchoring residual indexation routes that survived the Finance Act 2024 reset. The watchlist for the week ahead.
Today is Saturday, 9 May 2026. Indian equity markets are shut for the weekend, with NSE and BSE due to reopen at 09:15 IST on Monday, 11 May 2026. Tomorrow's watchlist therefore looks across a working week shaped less by earnings drama and more by tax-administration plumbing. Chief among the items is the Cost Inflation Index (CII) notified annually by the Central Board of Direct Taxes under Section 48 of the Income-tax Act, 1961. CBDT pegged CII for FY 2024-25 at 363 (Notification 44/2024) and for FY 2025-26 at 376 per its standard cycle published on incometax.gov.in. The number remains operative for indexed cost of acquisition computations that still attract indexation, a much narrower universe after the Finance (No. 2) Act 2024.
Why does an index that updates each May matter to a Monday-morning watchlist? Because residual indexation, for unlisted shares of foreign companies, debt-oriented mutual fund units acquired before 1 April 2023 with carried-forward losses, and the grandfathered land-or-building route for resident transferors, still depends on the CII published in May or June each year. Treasury teams reconciling Q4 FY 2025-26 capital-gains entries cannot finalise their LTCG numbers without the gazette figure, and individual taxpayers running through their AY 2026-27 returns due 31 July 2026 carry the same dependency.
Statutory Deadlines
The week beginning Monday 11 May 2026 is GST-heavy at the front and TDS-heavy at the back. Monthly GSTR-1 for April 2026 outward supplies is due on 11 May 2026 for taxpayers above the QRMP turnover threshold. GSTR-3B for the same population falls on 20 May 2026. The quarterly TDS statement window, covering Form 24Q (salary), 26Q (non-salary residents) and 27Q (non-resident payments), closes on Saturday 31 May 2026 for the Q4 FY 2025-26 quarter ending 31 March 2026. Form 16 and 16A issuance to deductees follows by 15 June 2026 under Rule 31 of the Income-tax Rules, the same date by which the first instalment of advance tax for FY 2026-27 is payable under Section 211.
| Filing | Form | Period covered | Due date | Authority |
|---|---|---|---|---|
| GSTR-1 monthly | GSTR-1 | April 2026 | 11 May 2026 | GSTN |
| GSTR-3B monthly | GSTR-3B | April 2026 | 20 May 2026 | GSTN |
| TDS quarterly statement | 24Q / 26Q / 27Q | Q4 FY 2025-26 | 31 May 2026 | CBDT |
| Form 16 / 16A issuance | Part A and B | FY 2025-26 | 15 June 2026 | CBDT |
| Advance tax Q1 | Challan 280 | FY 2026-27 | 15 June 2026 | CBDT |
Resident sellers who transferred land or building before 23 July 2024 retain the option to compute long-term capital gains at 20% with indexation under the pre-amendment Section 112 read with Section 48, applying the CII for both the year of acquisition and the year of transfer. After 23 July 2024 the standard rate moves to 12.5% without indexation under the Finance (No. 2) Act 2024, with the proviso that resident individuals and HUFs may elect the old method and pay the lower of the two. Practitioners running through 31 July 2026 ITR filings (the non-audit due date for AY 2026-27) should map every property sale to one of the two regimes and pull the CII via the notification list at incometax.gov.in/Pages/Notifications.aspx. We covered the TDS quarterly cycle in detail earlier this calendar.
Market Events
Monday 11 May 2026 opens with overnight US cues from the Friday 8 May New York close. Pre-open futures from GIFT Nifty (the Singapore-to-Gandhinagar migration we covered earlier) trade in three sessions through Sunday and reopen at 06:30 IST on Monday, supplying the headline reference for the cash market open at 09:15 IST. The Reserve Bank of India publishes its weekly statistical supplement on Friday, including foreign exchange reserves as of 8 May 2026 (rbi.org.in). For the broader macro pulse, the Ministry of Statistics releases April 2026 CPI inflation on the second Tuesday of the month under standard MOSPI calendars, with IIP for March 2026 typically following two days later.
For derivatives traders, Nifty 50 weekly expiry continues on Tuesdays under SEBI's expiry-rotation framework, which means the 12 May Nifty weekly close will set the tone for May-end positioning. Bank Nifty weekly expiry sits on Wednesdays. Stock-specific F and O lots remain on the last-Thursday cycle for monthly settlement, with the May monthly expiry due on 28 May 2026. Corporate disclosures filed under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Regulation 30 read with Schedule III, populate the BSE Listing Centre and NSE NEAPS portals (sebi.gov.in) with the official weekly results slate, ahead of the secondary aggregators.
Earnings
The Q4 FY 2025-26 earnings season is in its concluding phase. The index heavyweights, IT services in mid-April and the major private banks across late April and the first week of May, have already reported. The 11-15 May window is dominated by mid-cap and small-cap declarations, plus a tail of NBFCs and consumer companies whose audit cycles run later. Confirmed result dates for individual issuers are filed through corporate disclosures on the BSE Listing Centre and the NSE NEAPS portal under Regulation 30. Investors should pull the weekly slate from the official corporate filings calendars at the exchange portals rather than from secondary aggregators.
CII matters indirectly here too. Companies disclosing capital-gains line items in standalone financials, particularly those holding unlisted strategic stakes or property assets, apply the FY 2025-26 index of 376 to the cost basis of qualifying assets transferred during the year. That feeds the deferred-tax workings auditors review before the 30 May statutory deadline for annual results under Regulation 33.
| FY | CII | Year-on-year change |
|---|---|---|
| FY 2022-23 | 331 | --- |
| FY 2023-24 | 348 | +5.1% |
| FY 2024-25 | 363 | +4.3% |
| FY 2025-26 | 376 | +3.6% |
The decelerating index growth tracks the easing CPI print over the same window, a structural reminder that indexation benefit shrinks in low-inflation regimes. That was one of the policy arguments advanced in the explanatory memorandum to the Finance (No. 2) Bill 2024 for moving to a lower-rate, no-indexation system. For most asset classes the trade-off is straightforward; for property and unlisted equity it depends on holding period and acquisition cost relative to fair market value.
Practical takeaways for Monday's open
Equity holders running quick screens before 11 May 2026 should keep three calendar items live. First, Nifty weekly expiry on Tuesday 12 May 2026 will price most of the week's macro releases, including any RBI scheduled communication. Second, the 31 May 2026 TDS deadline pushes employer-side reconciliations into mid-May, which can move payroll-linked stocks (HRMS providers, salary-payments fintechs) on volume. Third, for individual investors planning a switch out of long-held mutual fund units, modelling LTCG under both regimes (the SIP calculator and lumpsum calculator help size the corpus first) before placing redemption orders avoids the surprise of discovering at filing time that the grandfathering route would have saved tax. Investors layering top-ups can model the trajectory using the step-up SIP calculator before redirecting cash flow.
For taxpayers carrying property sales into AY 2026-27, the calendar discipline is simple: ensure Form 26AS reconciles with the broker or sub-registrar TDS captures by 15 June 2026, then run the dual computation against the notified CII figure of 376 and the 12.5% flat rate. The lower number is what flows into the final return.
FAQ
What is the Cost Inflation Index for FY 2025-26?
CBDT notifies the CII annually under Section 48 of the Income-tax Act, 1961. CII for FY 2024-25 stood at 363 and for FY 2025-26 at 376, published in the standard CBDT notification cycle at incometax.gov.in/Pages/Notifications.aspx.
Has indexation been removed entirely from capital gains?
No. The Finance (No. 2) Act 2024 moved the standard long-term capital gains rate to 12.5% without indexation from 23 July 2024. Resident individuals and HUFs transferring land or building acquired before 23 July 2024 retain the option to compute under the pre-amendment regime (20% with indexation) and pay the lower of the two amounts.
Why does the CII still matter if indexation is gone for most assets?
Because the grandfathering option for property, plus residual cases such as carried-forward LTCL set-off and certain unlisted assets, continues to use the CII to compute indexed cost of acquisition. The notification cycle therefore remains operative for taxpayers using those routes through AY 2026-27.
When is the TDS quarterly statement due for Q4 FY 2025-26?
The Form 24Q, 26Q and 27Q quarterly TDS statement for Q4 FY 2025-26 is due on 31 May 2026, with Form 16 and 16A issuance to follow by 15 June 2026 under Rule 31 of the Income-tax Rules.
What are the GST monthly deadlines for April 2026 supplies?
GSTR-1 for April 2026 falls on 11 May 2026 for taxpayers above the QRMP turnover threshold, and GSTR-3B on 20 May 2026.
Where is the official CII notification published?
On the Income Tax Department's notifications page at incometax.gov.in/Pages/Notifications.aspx, indexed by financial year. The notification is a one-page CBDT release citing Section 48 explanatory clause (v).
How should I plan SIP redemptions around these rules?
Model the corpus with the SIP calculator and the lumpsum calculator first, then run the LTCG computation under the 12.5% flat regime alongside any indexation route still available for your asset class. The lower-tax answer determines the optimal redemption amount and timing.
Sources & Citations
- CBDT Notifications: Cost Inflation Index — Income Tax Department
- RBI Weekly Statistical Supplement — Reserve Bank of India
- SEBI (LODR) Regulations, 2015 — Securities and Exchange Board of India
- Income-tax Act, 1961 (Section 48) — India Code
Frequently Asked Questions
What is the Cost Inflation Index for FY 2025-26?
CBDT notifies the CII annually under Section 48 of the Income-tax Act, 1961. CII for FY 2024-25 stood at 363 and for FY 2025-26 at 376, published in the standard CBDT notification cycle at incometax.gov.in/Pages/Notifications.aspx.
Has indexation been removed entirely from capital gains?
No. The Finance (No. 2) Act 2024 moved the standard long-term capital gains rate to 12.5% without indexation from 23 July 2024. Resident individuals and HUFs transferring land or building acquired before 23 July 2024 retain the option to compute under the pre-amendment regime (20% with indexation) and pay the lower of the two amounts.
Why does the CII still matter if indexation is gone for most assets?
Because the grandfathering option for property, plus residual cases such as carried-forward LTCL set-off and certain unlisted assets, continues to use the CII to compute indexed cost of acquisition. The notification cycle therefore remains operative for taxpayers using those routes through AY 2026-27.
When is the TDS quarterly statement due for Q4 FY 2025-26?
The Form 24Q, 26Q and 27Q quarterly TDS statement for Q4 FY 2025-26 is due on 31 May 2026, with Form 16 and 16A issuance to follow by 15 June 2026 under Rule 31 of the Income-tax Rules.
What are the GST monthly deadlines for April 2026 supplies?
GSTR-1 for April 2026 falls on 11 May 2026 for taxpayers above the QRMP turnover threshold, and GSTR-3B on 20 May 2026.
Where is the official CII notification published?
On the Income Tax Department's notifications page at incometax.gov.in/Pages/Notifications.aspx, indexed by financial year. The notification is a one-page CBDT release citing Section 48 explanatory clause (v).
How should I plan SIP redemptions around these rules?
Model the corpus with the SIP calculator and the lumpsum calculator first, then run the LTCG computation under the 12.5% flat regime alongside any indexation route still available for your asset class. The lower-tax answer determines the optimal redemption amount and timing.