Pay Zero Tax on ₹15.85 Lakh Salary — Here's How
If you earn ₹15.85 lakh a year, you can legally bring your taxable income below ₹12 lakh using the new tax regime. Tools like NPS contributions, meal vouchers, and smart salary structuring can wipe out your entire income tax bill. This is 100% legal and available to most salaried employees in India.
A salaried employee contributing just ₹50,000 extra to NPS through their employer saves more in tax than most people spend on an entire year of weekend dinners — and builds a retirement corpus at the same time.
With the right salary structure, your entire income tax liability can drop to zero — saving you anywhere from ₹50,000 to over ₹1 lakh that stays in your pocket every year.
Key Takeaways
Ask your HR to restructure your CTC to include employer NPS contribution (up to 10% of basic salary is fully tax-free under Section 80CCD(2)) — this alone can cut ₹50,000–₹75,000 from your taxable income.
Opt for meal vouchers or food allowance (up to ₹26,400/year is tax-exempt) and other reimbursement components like internet or phone allowance to reduce your gross taxable salary before applying the standard deduction.
Claim the full ₹75,000 standard deduction available under the new tax regime for FY 2024-25 — it's automatic for salaried employees but confirm it appears correctly in your Form 16 and ITR.
Most salaried Indians assume that earning above ₹12 lakh means paying income tax under the new regime. But that's not the full picture. With a few smart, legal moves, someone earning up to ₹15.85 lakh can bring their taxable income below ₹12 lakh — and pay absolutely nothing in tax.
Here's how the math works. Under the new tax regime for FY 2024-25, income up to ₹12 lakh attracts zero tax thanks to the rebate under Section 87A. Add the ₹75,000 standard deduction for salaried employees, and your gross salary can be ₹12.75 lakh before any restructuring is needed. Now layer in employer NPS contributions under Section 80CCD(2) — up to 10% of your basic salary is deducted from taxable income without any upper cap under the new regime. If your basic is ₹7–8 lakh, that's another ₹70,000–₹80,000 shaved off. Add tax-free meal vouchers (up to ₹26,400/year) and you're suddenly well past ₹15 lakh in gross salary with zero tax owed.
The key is salary structuring — and this requires a conversation with your HR or payroll team. Many companies allow employees to redesign their CTC to include NPS, food coupons, and reimbursement components. If your employer offers a Flexible Benefit Plan (FBP), use it actively instead of letting everything default to taxable cash salary.
One important note: the new regime does NOT allow deductions like 80C (PPF, ELSS, LIC) or HRA. So this strategy works purely through exempt allowances and the NPS employer contribution route — no old-regime deductions apply.
If you're unsure where your tax liability stands or want to plan your finances around your take-home, GoCredit can help you track your financial health and find the right money moves for your income level. Pro tip: even if you can't get to zero tax, every ₹10,000 reduction in taxable income saves you ₹2,000–₹3,000 in actual tax — small restructuring changes compound significantly over a career.
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