You bought a property in 2005 for ₹20 lakh and sold it in 2025 for ₹75 lakh. Without indexation, your LTCG is ₹55 lakh and tax at 12.5% is ₹6.88 lakh. With indexation, the Cost Inflation Index adjusts your purchase price to ₹64.27 lakh (accounting for 20 years of inflation), reducing LTCG to ₹10.73 lakh and tax at 20% to just ₹2.15 lakh. Indexation saved you ₹4.73 lakh — nearly 69% less tax. This is why understanding the CII table is critical, especially for property sellers with pre-July 2024 purchases.
Budget 2024 removed indexation for most assets from 23 July 2024, but property acquired before that date still gets the choice. This guide covers the complete CII table, the indexed cost formula, worked examples showing when indexation wins, and what changed after Budget 2024. For the broader capital gains tax framework, see our complete guide.
Indexed Cost = Purchase Price × (CII of Sale Year ÷ CII of Purchase Year). CII for FY 2025-26 = 376. Base year 2001-02 = 100. For property bought before 23 July 2024: choose between 20% with indexation OR 12.5% without — pick the lower tax. Use our Capital Gains Calculator and Inflation Calculator.
Complete Cost Inflation Index (CII) Table: 2001-02 to 2025-26
Source: CBDT Notification 70/2025. Base year 2001-02 = 100. CII is notified annually under Section 48 of the Income Tax Act based on 75% of the average CPI rise for urban non-manual employees.
| Financial Year | CII |
|---|---|
| 2001-02 | 100 |
| 2002-03 | 105 |
| 2003-04 | 109 |
| 2004-05 | 113 |
| 2005-06 | 117 |
| 2006-07 | 122 |
| 2007-08 | 129 |
| 2008-09 | 137 |
| 2009-10 | 148 |
| 2010-11 | 167 |
| 2011-12 | 184 |
| 2012-13 | 200 |
| 2013-14 | 220 |
| 2014-15 | 240 |
| 2015-16 | 254 |
| 2016-17 | 264 |
| 2017-18 | 272 |
| 2018-19 | 280 |
| 2019-20 | 289 |
| 2020-21 | 301 |
| 2021-22 | 317 |
| 2022-23 | 331 |
| 2023-24 | 348 |
| 2024-25 | 363 |
| 2025-26 | 376 |
Worked Examples: With Indexation vs Without (Verified)
| Scenario | Purchase Price | CII (Buy) | Sale Price (2025-26) | Indexed Cost | Tax @20% (Indexed) | Tax @12.5% (No Index) | Better Option |
|---|---|---|---|---|---|---|---|
| Property 2005 → 2025 | ₹20L | 117 | ₹75L | ₹64.27L | ₹2.15L | ₹6.88L | Indexation saves ₹4.73L |
| Property 2012 → 2025 | ₹30L | 200 | ₹90L | ₹56.40L | ₹6.72L | ₹7.50L | Indexation saves ₹0.78L |
| Property 2018 → 2025 | ₹50L | 280 | ₹80L | ₹67.14L | ₹2.57L | ₹3.75L | 12.5% is better here? Check both! |
| Property 2001 → 2025 (FMV) | ₹10L (FMV) | 100 | ₹1Cr | ₹37.60L | ₹12.48L | ₹11.25L | 12.5% slightly better |
| Inherited (father bought 1995) | ₹10L (FMV 2001) | 100 | ₹60L | ₹37.60L | ₹4.48L | ₹6.25L | Indexation saves ₹1.77L |
Pattern: Indexation wins for older properties (15-20+ years) where inflation has dramatically increased the indexed cost. For recent purchases (5-8 years), the 12.5% flat rate often wins because CII adjustment isn't large enough to offset the higher 20% tax rate. Always compute both — the Income Tax Act gives you the right to choose the lower amount for property acquired before 23 July 2024. Use our Capital Gains Calculator to compute instantly.
What Changed After Budget 2024 (23 July 2024)
| Asset Type | Before 23 July 2024 | After 23 July 2024 |
|---|---|---|
| Listed equity, equity MF | 10% LTCG (no indexation, ₹1L exempt) | 12.5% LTCG (no indexation, ₹1.25L exempt) |
| Debt MF (post-Apr 2023) | Slab rate (no LTCG benefit) | Slab rate (unchanged) |
| Debt MF (pre-Apr 2023) | 20% with indexation after 3yr | 12.5% without indexation after 24mo |
| Property (bought before 23 Jul 2024) | 20% with indexation | CHOICE: 20% with indexation OR 12.5% without |
| Property (bought after 23 Jul 2024) | — | 12.5% without indexation only |
| Gold, international funds | 20% with indexation after 36mo | 12.5% without indexation after 24mo |
| Unlisted shares | 20% with indexation after 24mo | 12.5% without indexation after 24mo |
The removal of indexation simplifies tax calculation but can increase the tax burden for long-held assets, particularly gold and real estate. The property grandfathering clause (choice for pre-July 2024 purchases) was introduced after significant public backlash against the original proposal. For understanding how these tax changes affect your real rate of return, see our Fisher equation guide. Compare investment instruments in our gold vs FD vs equity analysis and NPS vs PPF vs EPF guide. For tax planning under the old vs new tax regime, see our detailed comparison. Use Section 80C deductions and HRA exemption to reduce overall tax liability. For broader financial planning, check our retirement corpus guide, cost of delay, mutual fund real returns, FD real returns, and 7 strategies to beat inflation. Use our SIP Calculator, Lumpsum Calculator, EPF Calculator, PPF Calculator, Inflation Calculator, and Purchasing Power Calculator. See CPI vs WPI for how the underlying inflation index differs from CII, and India's inflation history for context on why CII has grown 3.76x since 2001.