Cost Inflation Index (CII)
Definition
Government-notified index used to adjust the purchase cost of an asset for inflation when calculating Long-Term Capital Gains (LTCG) on non-equity assets.
In Context
CII varies yearly (FY 2025-26: 363). Formula: Indexed Cost = Original Cost × (CII of sale year ÷ CII of purchase year). Used for property, gold, and debt fund LTCG — NOT for listed equity or equity mutual funds.
Related Terms
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