Tata Capital > Blog > Generic > Income tax on a 15 lakh salary in India
10 March 2026
6 mins read
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The new tax season brings countless worries and questions, from figuring out the right tax regime to looking for the best tax-saving options. Safe to say, filing ITRs and navigating the tax regime can quickly overwhelm you.
The FY 2025-26 lets you choose between the old tax regime and the new one, allowing you to opt for the regime that benefits you most. While the old regime offers more deductions, the new regime provides lower tax slabs.
Choosing which regime to follow requires a detailed assessment of your income as well as the tax exemptions and deductions available to you.
This article will explore the updated 15 lakh income tax rates and help you maximize your tax savings on a 15 lakh salary.
The 2026 Union Budget didn’t announce any changes to the tax regime, keeping tax slab rates and rebates unchanged.
The following table illustrates the income tax rates for the fiscal year 2025-26 according to the new tax regime:
| Total income in rupees | Rate of tax |
| Up to 4 lakh | 0% |
| 4 to 8 lakh | 5% |
| 8 to 12 lakh | 10% |
| 12 to 16 lakh | 15% |
| 16 to 20 lakh | 20% |
| 20 to 24 lakh | 25% |
| Over 24 lakh | 30% |
These tax revisions significantly reduce the tax amount payable by individuals in the 15 lakh tax slab by lowering the tax rate for that income bracket.
Here is a comparison of the tax rates according to the old vs the new tax regimes:
| Total income in rupees | Tax rate in the old regime | Tax rate in the new regime (2026) |
| Up to Rs. 2.5 lakh | 0% | 0% |
| Rs. 2.5 lakh – Rs. 4 lakh | 5% | 0% |
| Rs. 4 lakh – Rs. 8 lakh | 5% | 5% |
| Rs. 8 lakh – Rs. 12 lakh | 20% | 10% |
| Rs. 12 lakh – Rs. 16 lakh | 30% | 15% |
| Rs. 16 lakh – Rs. 20 lakh | 30% | 20% |
| Rs. 20 lakh – Rs. 24 lakh | 30% | 25% |
| Over Rs. 24 lakh | 30% | 30% |
While the new tax regime introduces some much-needed financial relief for the people, you can still opt for the old tax regime if the deductions and exemptions claimed under it benefit you more.
The new tax regime offers valuable tax deductions that can help you reduce liabilities on a 15 lakh salary tax, including:
However, the deductions and exemptions offered by the new regime are limited compared to the old regime, with certain key deductions no longer available.
Some changes to tax deductions to keep in mind are:
Which tax regime one should opt for will vary from person to person, as the income tax for 15 lakh can differ according to factors like investments and income type.
The best tax regime for you will depend on your applicable income bracket. You must carefully review the exemptions and deductions available to you under each regime. This process may also include a review of your income source and investments.
As a general rule, opt for the old tax regime if your income-saving investments are over Rs. 3,75,000. If your income-saving investments are less than that, the lower tax rates offered by the new tax regime might benefit you more.
The following example helps you understand the calculation of income tax on a 15 lakh salary under both the new and old regimes.
Here’s the tax calculation as per the slab rates:
| Slab | Tax rate | Amount (Rs.) |
| 0 – 4,00,000 | 0% | Nil |
| 4,00,001 – 8,00,000 | 5% | 20,000 |
| 8,00,001 – 12,00,000 | 10% | 40,000 |
| 12,00,001 – 14,25,000 | 15% | 33,750 |
| Total tax | 93,750 | |
| 4% cess | 3,750 | |
| Total tax payable | 97,500 |
So, the total tax on a 15 LPA salary under the new regime is Rs. 97,500.
Here’s the tax calculation as per the slab rates:
| Slab | Tax rate | Amount (Rs.) |
| 0 – 2,50,000 | 0% | Nil |
| 2,50,001 – 5,00,000 | 5% | 12,500 |
| 5,00,001 – 10,00,000 | 20% | 1,00,000 |
| 10,00,001 – 12,75,000 | 30% | 82,500 |
| Total tax | 1,95,000 | |
| 4% cess | 7,800 | |
| Total tax payable | 2,02,800 |
The final income tax on a 15 lakh salary under the old regime is Rs. 2,02,800.
Thus, as per this example, filing returns under the new regime is beneficial, as the tax liability is much lower. However, if you have higher deductions, you must check the calculation in both regimes before deciding which one is more suitable for you.
If you want to reduce tax for a 15 LPA salary in India, here are some deductions that you can use under the new tax regime:
The old tax regime offers more tax-saving options in the form of the following deductions:
Here are some interesting tips to help you on your tax journey.
Careful tax planning and thorough analysis of the old vs. new tax regime are key to maximizing your tax savings on 15 lakh income and cutting down on liabilities. Learn how to plan your taxes the smart way with Tata Capital’s guides on tax on 7 lakh income and tax on 12 lakh income.
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The tax regime that best fits you will depend on the exemptions and deductions for which you are eligible. You can benefit from lower tax liability under the old regime if your tax-saving investments exceed Rs. 3,75,000. Otherwise, the new tax regime would be best.
Under the new tax regime, incomes up to Rs. 12 lakhs are exempt from taxes. However, you can still pay zero tax on 15 lakhs salary by making smart use of exemptions and deductions, such as the deductions for senior citizens available under section 80D and the standard deduction of Rs. 50,000. You can also invest your Rs. 1.5 lakhs ELSS and PPF under section 80C, or Rs, 50,000 in National Pension Scheme under section 80CCD(1B).
Individuals who have to pay tax on 15 lakhs salary can avail key tax deductions like those for investments, such as PPF, LIC, and ELSS, under section 80C, medical insurance premiums under section 80D, education loan interest under section 80E, and charity donations under section 80G. You can also benefit from HRA, LTA, and standard deduction depending on your eligibility.
30% is the average rate of income tax on 15 lakhs salary that you will have to pay under the old tax regime. This totals Rs. 4,53,00 and leaves you with a net annual income of Rs. 10,47,000.
The tax on 15 lakh income in the new regime is around Rs. 97,500, including cess. Under the old regime, the tax amount depends on the amount of deductions you have.
If you do not have many deductions to claim, the new regime is usually better. However, the old regime is better if you invest heavily in 80C, buy insurance, or claim home loan benefits.
It is very difficult to pay zero tax for a 15 lakh salary in India. You would need maximum deductions under the old regime, along with exemptions like HRA and eligible rebates. Zero tax is possible on an annual income of Rs. 12 lakh.
Under the new regime, after paying roughly Rs. 97,500 tax yearly, the monthly take-home may be around Rs. 1.15 to Rs. 1.20 lakh. It depends on PF and other salary deductions.
You can claim Rs. 50,000 standard deduction, Rs. 1.5 lakh under 80C, health insurance under 80D, home loan interest (Section 24), HRA, LTA, and other eligible exemptions.
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