Income Tax on ₹15 Lakh Salary: Key Numbers
- New regime tax: ₹97,500 (effective rate 6.50%) after ₹75,000 standard deduction. No other deductions needed.
- Old regime tax: ₹2,57,400 with no deductions, dropping to ₹2,02,800 with basic 80C and 80D investments.
- Breakeven point: ₹5.94 lakh in deductions. Below this, the new regime wins. Above it, the old regime wins.
- The Section 87A rebate does not apply at ₹15 lakh because taxable income (₹14.25 lakh) exceeds the ₹12 lakh threshold.
- No surcharge applies. Surcharge triggers only when taxable income exceeds ₹50 lakh.
- For most salaried employees at ₹15 lakh without a home loan or HRA, the new regime saves ₹1.05 to ₹1.60 lakh per year.
A ₹15 lakh annual salary is the most common income bracket where the regime choice genuinely matters. At ₹60 or ₹70 lakh, the new regime wins for almost everyone. At ₹8 or ₹10 lakh, the 87A rebate makes income nearly tax-free. But at ₹15 lakh, the answer depends on your actual deductions.
This guide calculates the exact tax under both regimes for FY 2026-27 (AY 2027-28), shows four realistic scenarios, and gives you the breakeven number so you can decide in under two minutes.
Looking for expert help with income tax on 15 lakh salary, 15 lakh salary tax calculation, new vs old regime 15 lakh, income tax 15 lakh FY 2026-27? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant. End-to-end filings, notices, and deadline tracking, all in one place.
New Tax Regime: ₹97,500 Total Tax
The new tax regime is the default for all taxpayers from FY 2024-25 onward. You do not need to file Form 10-IEA to use it. It offers lower slab rates but does not allow most deductions and exemptions.
Step 1: Standard Deduction
| Particulars | Amount |
|---|---|
| Gross Annual Salary | ₹15,00,000 |
| Less: Standard Deduction | (₹75,000) |
| Taxable Income | ₹14,25,000 |
Step 2: Apply New Regime Slabs (FY 2026-27)
| Income Slab | Rate | Tax |
|---|---|---|
| Up to ₹4,00,000 | Nil | ₹0 |
| ₹4,00,001 to ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,001 to ₹12,00,000 | 10% | ₹40,000 |
| ₹12,00,001 to ₹14,25,000 | 15% | ₹33,750 |
| Total Income Tax | ₹93,750 |
Step 3: Health and Education Cess
| Component | Amount |
|---|---|
| Income Tax | ₹93,750 |
| Health & Education Cess @ 4% | ₹3,750 |
| Total Tax Liability | ₹97,500 |
No surcharge applies because taxable income is below ₹50 lakh.
New Regime Summary
| Component | Amount |
|---|---|
| Income Tax | ₹93,750 |
| Surcharge | Nil |
| Health & Education Cess (4%) | ₹3,750 |
| Total Tax | ₹97,500 |
| Effective Tax Rate | 6.50% |
| Monthly Tax | ₹8,125 |
| Take-Home (Annual) | ₹14,02,500 |
Why the Section 87A Rebate Does Not Apply
A common misconception: many salaried employees at ₹15 lakh expect zero tax because Budget 2025 made income up to ₹12 lakh tax-free. Here is why that does not help at ₹15 lakh.
The Section 87A rebate of ₹60,000 under the new regime applies only when taxable income does not exceed ₹12,00,000. After the ₹75,000 standard deduction, a ₹15 lakh salary leaves taxable income of ₹14,25,000, which is ₹2,25,000 above the rebate threshold.
| Salary | Standard Deduction | Taxable Income | 87A Rebate? | Tax |
|---|---|---|---|---|
| ₹12,75,000 | ₹75,000 | ₹12,00,000 | Yes (₹60,000) | ₹0 |
| ₹13,00,000 | ₹75,000 | ₹12,25,000 | No | ₹41,600 |
| ₹15,00,000 | ₹75,000 | ₹14,25,000 | No | ₹97,500 |
The tax-free ceiling for salaried employees under the new regime is ₹12,75,000, not ₹15 lakh.
Old Tax Regime: Four Scenarios
The old regime offers deductions that can reduce your taxable income significantly, but it has higher slab rates (5%, 20%, 30%) and a lower basic exemption of ₹2.5 lakh. You must file Form 10-IEA before the due date to opt into the old regime.
Scenario A: No Deductions (Standard Deduction Only)
| Particulars | Amount |
|---|---|
| Gross Salary | ₹15,00,000 |
| Standard Deduction (Old Regime) | (₹50,000) |
| Taxable Income | ₹14,50,000 |
| Income Slab | Rate | Tax |
|---|---|---|
| Up to ₹2,50,000 | Nil | ₹0 |
| ₹2,50,001 to ₹5,00,000 | 5% | ₹12,500 |
| ₹5,00,001 to ₹10,00,000 | 20% | ₹1,00,000 |
| ₹10,00,001 to ₹14,50,000 | 30% | ₹1,35,000 |
| Total Tax | ₹2,47,500 | |
| Cess @ 4% | ₹9,900 | |
| Total | ₹2,57,400 |
New regime saves ₹1,59,900. Without any deductions, the old regime is a clear loss.
Scenario B: Basic Investments (80C + 80D)
Most salaried employees make at least some tax-saving investments. This scenario assumes:
| Deduction | Section | Amount |
|---|---|---|
| Standard Deduction | 16(ia) | ₹50,000 |
| PPF/ELSS/EPF/LIC | 80C | ₹1,50,000 |
| Health Insurance (Self) | 80D | ₹25,000 |
| Total Deductions | ₹2,25,000 |
Taxable Income: ₹12,75,000
| Income Slab | Rate | Tax |
|---|---|---|
| Up to ₹2,50,000 | Nil | ₹0 |
| ₹2,50,001 to ₹5,00,000 | 5% | ₹12,500 |
| ₹5,00,001 to ₹10,00,000 | 20% | ₹1,00,000 |
| ₹10,00,001 to ₹12,75,000 | 30% | ₹82,500 |
| Total Tax | ₹1,95,000 | |
| Cess @ 4% | ₹7,800 | |
| Total | ₹2,02,800 |
New regime saves ₹1,05,300. Even with ₹1.5 lakh in 80C and ₹25,000 in 80D, the old regime is still significantly more expensive.
Scenario C: HRA Claim + NPS + 80D Parents
This scenario applies to employees living in rented accommodation in a metro city:
| Deduction | Section | Amount |
|---|---|---|
| Standard Deduction | 16(ia) | ₹50,000 |
| PPF/ELSS/EPF/LIC | 80C | ₹1,50,000 |
| Health Insurance (Self + Parents) | 80D | ₹50,000 |
| NPS Employee Contribution | 80CCD(1B) | ₹50,000 |
| HRA Exemption (₹15,000/month rent, metro) | 10(13A) | ₹1,50,000 |
| Professional Tax | 16(iii) | ₹2,500 |
| Total Deductions | ₹4,52,500 |
Taxable Income: ₹10,47,500
| Income Slab | Rate | Tax |
|---|---|---|
| Up to ₹2,50,000 | Nil | ₹0 |
| ₹2,50,001 to ₹5,00,000 | 5% | ₹12,500 |
| ₹5,00,001 to ₹10,00,000 | 20% | ₹1,00,000 |
| ₹10,00,001 to ₹10,47,500 | 30% | ₹14,250 |
| Total Tax | ₹1,26,750 | |
| Cess @ 4% | ₹5,070 | |
| Total | ₹1,31,820 |
New regime still saves ₹34,320. Even with aggressive deductions including HRA and NPS, the new regime wins at this salary level.
Scenario D: Home Loan + HRA + Maximum Deductions
The old regime beats the new regime only with a full deduction stack:
| Deduction | Section | Amount |
|---|---|---|
| Standard Deduction | 16(ia) | ₹50,000 |
| PPF/ELSS/EPF/LIC | 80C | ₹1,50,000 |
| Health Insurance (Self + Parents) | 80D | ₹50,000 |
| NPS Employee Contribution | 80CCD(1B) | ₹50,000 |
| HRA Exemption | 10(13A) | ₹1,80,000 |
| Home Loan Interest | 24(b) | ₹2,00,000 |
| Professional Tax | 16(iii) | ₹2,500 |
| Total Deductions | ₹6,82,500 |
Taxable Income: ₹8,17,500
| Income Slab | Rate | Tax |
|---|---|---|
| Up to ₹2,50,000 | Nil | ₹0 |
| ₹2,50,001 to ₹5,00,000 | 5% | ₹12,500 |
| ₹5,00,001 to ₹8,17,500 | 20% | ₹63,500 |
| Total Tax | ₹76,000 | |
| Cess @ 4% | ₹3,040 | |
| Total | ₹79,040 |
Old regime saves ₹18,460. But this requires both HRA and home loan interest, which is possible only if you rent in one city and own property in another (or your property is under construction).
The Breakeven: ₹5.94 Lakh in Deductions
The single most important number for a ₹15 lakh salary: ₹5,93,750 in total deductions.
| Total Deductions (Old Regime) | Old Regime Tax | New Regime Tax | Winner |
|---|---|---|---|
| ₹50,000 (std deduction only) | ₹2,57,400 | ₹97,500 | New by ₹1,59,900 |
| ₹2,25,000 (80C + 80D) | ₹2,02,800 | ₹97,500 | New by ₹1,05,300 |
| ₹4,52,500 (+ HRA + NPS) | ₹1,31,820 | ₹97,500 | New by ₹34,320 |
| ₹5,93,750 (breakeven) | ₹97,500 | ₹97,500 | Tie |
| ₹6,82,500 (+ home loan) | ₹79,040 | ₹97,500 | Old by ₹18,460 |
If you cannot reach ₹5.94 lakh in legitimate deductions, stay in the new regime.
How to Decide: New or Old Regime?
Choose the New Regime If
- You do not pay rent or do not receive HRA from your employer
- You do not have a home loan
- Your 80C investments are below ₹1.5 lakh
- You prefer simplicity over tracking multiple deductions
- You are a new employee without existing tax-saving commitments
Choose the Old Regime If
- You claim HRA exemption and home loan interest (Section 24b) simultaneously
- Your total deductions exceed ₹5.94 lakh
- You have a home loan with interest exceeding ₹2 lakh per year
- You live in a metro city with high rent and also own property elsewhere
The Practical Reality
For most salaried employees at ₹15 lakh, the new regime saves between ₹35,000 and ₹1.6 lakh per year. The old regime wins only in specific cases where both HRA and home loan interest are claimed, which requires living in a rented house while simultaneously paying a home loan for a different property.
Regime Comparison at a Glance
| Factor | New Regime | Old Regime (Scenario B) |
|---|---|---|
| Standard Deduction | ₹75,000 | ₹50,000 |
| 80C Deduction | Not available | Up to ₹1,50,000 |
| 80D Deduction | Not available | Up to ₹25,000 (₹50,000 with parents) |
| HRA Exemption | Not available | Available |
| Home Loan Interest (24b) | Not available | Up to ₹2,00,000 |
| NPS 80CCD(1B) | Not available | Up to ₹50,000 |
| Total Tax | ₹97,500 | ₹2,02,800 |
| Effective Rate | 6.50% | 13.52% |
| Form 10-IEA Required | No (default) | Yes |
Monthly Salary Breakup After Tax (New Regime)
For a ₹15 lakh CTC employee under the new regime:
| Component | Monthly | Annual |
|---|---|---|
| Gross Salary | ₹1,25,000 | ₹15,00,000 |
| Income Tax (TDS) | (₹8,125) | (₹97,500) |
| Net Take-Home (Approx.) | ₹1,16,875 | ₹14,02,500 |
Actual take-home will be lower after EPF employee contribution (12% of basic), professional tax (state-dependent, ₹200/month max), and other statutory deductions. The ₹14.02 lakh figure reflects only income tax.
Common Mistakes to Avoid
1. Assuming ₹15 lakh is tax-free under the new regime. The 87A rebate covers only up to ₹12.75 lakh salary. At ₹15 lakh, you pay ₹97,500 in tax.
2. Choosing the old regime without calculating total deductions. Unless your deductions exceed ₹5.94 lakh, the old regime costs you more. Basic 80C and 80D investments alone are not enough.
3. Forgetting to file Form 10-IEA. If you want the old regime, you must submit Form 10-IEA to your employer before the ITR filing deadline. Missing this locks you into the new regime for that financial year.
4. Double-counting EPF in 80C. Your employer's EPF contribution and your own EPF contribution both count toward the ₹1.5 lakh 80C limit. If your basic salary is ₹6.25 lakh, your EPF contribution alone is ₹75,000, leaving only ₹75,000 for PPF, ELSS, or LIC.
5. Ignoring employer NPS contribution (80CCD(2)). This is the one major deduction available in both regimes. If your employer contributes to NPS, claim it under 80CCD(2) regardless of your regime choice.
Where Tax Garden Helps
Choosing between the new and old tax regimes at ₹15 lakh requires exact calculations based on your specific salary structure, rent, home loan, and investments. A wrong choice can cost up to ₹1.6 lakh per year.
Tax Garden's CAs help you:
- Calculate exact tax liability under both regimes with your actual salary breakup
- Identify all eligible deductions to determine if the old regime benefits you
- File Form 10-IEA on time if switching to the old regime
- File your ITR accurately with optimized regime selection
- Respond to income tax notices if your return is selected for processing
Looking for expert help with income tax on 15 lakh salary, 15 lakh salary tax calculation, new vs old regime 15 lakh, income tax 15 lakh FY 2026-27, tax on 15 lakh income? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant. End-to-end filings, notices, and deadline tracking, all in one place.
Income Tax on ₹15 Lakh Salary: Frequently Asked Questions
How much tax do I pay on a ₹15 lakh salary under the new regime?
Under the new tax regime for FY 2026-27, a ₹15 lakh salaried employee pays ₹97,500 in total tax (including 4% cess) after the ₹75,000 standard deduction. The effective tax rate is 6.50%.
Is the old regime better than the new regime for ₹15 lakh salary?
The old regime is better only if your total deductions exceed ₹5.94 lakh. This requires a combination of Section 80C (₹1.5 lakh), HRA exemption, home loan interest (Section 24b), NPS, and health insurance. Without these, the new regime saves ₹1,05,300 to ₹1,59,900.
What is the breakeven deduction for ₹15 lakh salary?
You need total deductions of at least ₹5,93,750 under the old regime to match the new regime tax of ₹97,500. Below this amount, the new regime wins. Above it, the old regime wins.
Can I claim HRA and home loan interest together?
Yes, you can claim both HRA exemption (Section 10(13A)) and home loan interest (Section 24b) if you live in a rented house in one city and own a property in another, or if your property is under construction. Both are available only under the old regime.
Is ₹15 lakh salary tax-free under the new regime?
No. The Section 87A rebate makes income tax-free only up to ₹12 lakh taxable income (₹12.75 lakh salary after standard deduction). A ₹15 lakh salary exceeds this threshold, so you pay ₹97,500 in tax.
What deductions can I claim under the new regime on ₹15 lakh salary?
Under the new regime, salaried employees can claim only the standard deduction of ₹75,000 and employer NPS contribution under Section 80CCD(2). Sections 80C, 80D, HRA, LTA, and home loan interest (Section 24b) are not available.
How much tax do I save by investing ₹1.5 lakh in Section 80C?
Section 80C is available only under the old regime. With ₹1.5 lakh in 80C deductions plus ₹50,000 standard deduction and ₹25,000 in 80D, your old regime tax drops to ₹2,02,800, but this is still ₹1,05,300 higher than the new regime tax of ₹97,500.
Sources: Income Tax Department (incometaxindia.gov.in), Finance Act 2025, Income Tax Act 2025 (Sections 115BAC, 87A, 80C, 80D, 80CCD, 24(b), 10(13A)), ClearTax, BankBazaar, Bajaj Finserv. The new regime slabs and Section 87A rebate limits for FY 2026-27 remain unchanged from FY 2025-26 as confirmed by Union Budget 2026. Verify current rates on incometaxindia.gov.in before acting. This article is general information and not a substitute for professional advice.
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