Claim audit · FY 2026-27
“You pay zero tax up to ₹12 lakh salary”
The condition that decides it
True only in the new regime for a resident with total income ≤ ₹12L (rebate u/s 87A up to ₹60,000, plus ₹75,000 standard deduction). Marginal relief softens the edge slightly above ₹12L — the viral 'cliff' framing is itself wrong. Special-rate income (e.g. 111A STCG) is outside the rebate for AY 2026-27.
What the department sees
Form 16 TDS, AIS
Data the Income-tax Department already receives automatically — the reel doesn't mention this part.
The real math
The reel’s ₹12 lakh headline compresses two separate calculations. Under the new regime, a ₹12,75,000 salary less the ₹75,000 standard deduction gives ₹12,00,000 total income: ₹12,75,000 − ₹75,000 = ₹12,00,000. Section 87A can then make tax nil up to ₹12 lakh, subject to the resident and ordinary-income conditions. This does not mean every ₹12 lakh of gross salary is automatically tax-free, and special-rate income such as section 111A STCG is outside the rebate for AY 2026-27. For salary of ₹12,00,001 after the applicable deduction, the statutory result is not a full cliff because marginal relief applies slightly above ₹12 lakh. A final payable amount depends on the complete income mix and any special-rate items in the return. The reel therefore implies a universal salary exemption, while the statute produces a conditional new-regime rebate, a ₹75,000 deduction, and marginal-relief treatment at the edge.
Questions people actually ask
There's a right way to do this
Which regime saves me more tax this year?
Sections: 87A, 115BAC, 16(ia) · We audit claims, not creators. Reviewed by Harun Raaj & Associates, Chartered Accountants · All audited claims