Income Tax Saving Calculation: Deducting a large part of the salary in tax has always been a matter of concern for the working class. A common man works hard throughout the month and when the salary comes into his account, a large part of the tax has already been deducted. But, the new tax rules for the financial year 2026-27 have given a big relief to the middle class. You can make your tax completely zero on packages up to Rs 15.85 lakh. This is not magic, but the correct mathematics of exemption available under the new tax regime. Let us understand how you can take full advantage of this ‘tax jackpot’ by planning your salary structure smartly.
Meal voucher is the new ‘Brahmastra’ to save tax
While many old deductions have been abolished in the new tax regime, Meal Vouchers under Section 115BAC have emerged as a big savior. As per the rules, there is a provision for complete tax exemption on meal vouchers up to Rs 200 per meal. If it is properly incorporated into the salary structure, it helps in reducing your gross salary faster. A discount of Rs 400 is available on including lunch and dinner in one day. If 22 days of work are considered in a month, then this Rs 8,800 becomes a huge tax-free amount of Rs 1,05,600 on a monthly basis.
What is the complete mathematics on CTC of ₹ 15.85 lakh?
Suppose your company offers you a CTC of Rs 15.85 lakh. In this situation, tax planning starts from your basic salary.
- Basic Salary: Usually it is 50 percent of the total CTC. In this case it will be Rs 7,92,500.
- Standard Deduction: Under the new tax system, every salaried employee gets a flat exemption of Rs 75,000 (Standard Deduction).
- Employer PF contribution: 12 percent of your basic salary is deposited in the PF account by the company. This amount is approximately Rs 95,100 and it is completely out of the tax net.
- Contribution to NPS: Under Section 80CCD(2) of Income Tax, if your employer invests 14 percent of your basic salary in the National Pension System, then you get a direct tax benefit of around Rs 1,10,950.
Your taxable income will come in such ‘safe zone’
Now let us conclude this entire calculation. If we add together all the deductions received from your salary, it becomes a big figure. By adding Rs 75,000 of standard deduction, Rs 95,100 of PF, Rs 1,10,950 of NPS and Rs 1,05,600 of meal voucher, the total amount of Rs 3,86,650 becomes tax-free.
When you deduct this Rs 3,86,650 from your total CTC of Rs 15.85 lakh, your net taxable income comes down to around Rs 11.98 lakh (under Rs 12 lakh). As per Income Tax Department rules, if your total taxable income is Rs 12 lakh or less, your final tax due to rebate becomes zero.