Sr. No. Year Cost Inflation Index
1 2001-02 100
2 2002-03 105
3 2003-04 109
4 2004-05 113
5 2005-06 117
6 2006-07 122
7 2007-08 129
8 2008-09 137
9 2009-10 148
10 2010-11 167
11 2011-12 184
12 2012-13 200
13 2013-14 220
14 2014-15 240
15 2015-16 254
16 2016-17 264
17 2017-18 272
18 2018-19 280

Though indexation, you will be able to deduct your long-term capital gains, bringing down your taxable income. Indexation is the reason why debt funds are considered an excellent fixed-income investment option when compared to conventional fixed deposits (FDs). Indexation makes the game of investment a win-win affair. The rate of inflation used for indexation can be taken from the government’s Cost Inflation Index (CII). The Central Government considers the values in the index and is updated on the Income Tax Department’s website.