With the introduction of the New Income Tax Rules 2025, salaried individuals can potentially bring their tax liability down to zero on a ₹15 lakh cost to company (CTC) by strategically utilizing allowances and perquisites. For example, under two scenarios, one without allowances and one optimized with various perks, taxable income can be reduced from ₹1,362,000 to ₹750,400. This results in a tax payable of ₹87,672 in the first scenario, while the optimized scenario yields a higher net cash-in-hand of ₹1,374,000. Key allowances that can be leveraged include meal vouchers, telephone reimbursements, and health benefits, which remain tax-efficient under the new regime. The rules also clarify that employer-provided gadgets used for official purposes are not taxable as perquisites. Furthermore, reimbursements for car maintenance and conveyance allowances can be structured to minimize tax impact. Overall, the new tax regime allows for significant tax savings through thoughtful compensation design, benefiting both employees and employers.