New Delhi, July 6 -- Many salaried individuals assume that earning more than Rs.12 lakh automatically means they have to pay income tax under the new tax regime. However, that's not always true.

If your annual Cost to Company (CTC) is Rs.14.65 lakh, you may still be able to reduce your taxable income below Rs.12 lakh and legally bring your income tax liability down to zero, provided your salary structure includes eligible employer contributions.

Here's how the calculation works to bring tax liability down to zero for FY 2026-27 under the new tax regime.

Let's assume:

Under the new tax regime, two employer contributions can reduce your taxable income.

In addition, every salaried taxpayer under the new regime gets a standard deduction ...