Yes , You can pay Zero tax on Rs 12 lakhs salary by claiming deduction and exemption like HRA exemption , 80C deduction , Standard deduction , Housing loan interest etc. Provision to pay zero tax on Rs 12 salary exists in the old tax regime by leveraging all the existing deduction and exemption. However under the new tax regime due to limited deductions and exemptions, paying zero tax on Rs. 12 lakhs is a rare possibility.