Nil Tax on CTC Over ₹15 Lakh in FY 2025-26

Your CTC up to ₹15 lakh or more can become tax-free under new regime in FY 2025-26

The Union Budget 2025 proposed nil tax on up to ₹12 lakh taxable income under the new tax regime. For salaried employees, the tax-free income limit will increase to a taxable income of up to ₹12.75 lakh due to the ₹75,000 standard deduction available to them.

Ever since the tax-relief announcement in Budget 2025, many salaried employees have been curious about whether their total salary package or CTC (cost-to-company) needs to be exactly ₹12 lakh to qualify for the nil tax benefit. Or, can they have a higher CTC and yet claim pay zero tax under the new regime?

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