How to Save Tax on a ₹15 Lakh Salary (FY 2025-26)
Updated for FY 2025-26 (AY 2026-27)
A ₹15 lakh salary sits right in the band where the regime choice matters most. Let's work through both, then list the deductions that actually move your tax bill.
New regime at ₹15 lakh
Taxable income after the ₹75,000 standard deduction = ₹14,25,000.
- ₹4–8L @ 5% = ₹20,000
- ₹8–12L @ 10% = ₹40,000
- ₹12–14.25L @ 15% = ₹33,750
- Tax ₹93,750 + 4% cess = ₹97,500
Old regime at ₹15 lakh (with deductions)
Suppose you claim: standard deduction ₹50,000, 80C ₹1,50,000, 80D ₹25,000, NPS ₹50,000, and HRA exemption ₹1,75,000. Total deductions ≈ ₹4,50,000, so taxable income ≈ ₹10,50,000.
- ₹2.5–5L @ 5% = ₹12,500
- ₹5–10L @ 20% = ₹1,00,000
- ₹10–10.5L @ 30% = ₹15,000
- Tax ₹1,27,500 + 4% cess = ₹1,32,600
In this example, the New regime is cheaper (₹97,500 vs ₹1,32,600) — unless your deductions are even larger. Push deductions higher (bigger HRA, home-loan interest of ₹2 lakh) and the Old regime can overtake it. This is exactly why you should compute, not assume.
Plug in your real deductions and see the winner instantly.
Compare for your salary →The deductions that move the needle (Old regime)
- HRA exemption — often the largest, if you pay rent. See the formula.
- 80C — ₹1.5 lakh — EPF, PPF, ELSS, life insurance, principal on home loan. Full list.
- 80CCD(1B) — ₹50,000 — extra NPS deduction over and above 80C.
- 80D — health insurance premium (₹25,000, or ₹50,000 for seniors).
- Home-loan interest — ₹2 lakh — under Section 24(b) for a self-occupied house.
Key point
Most deductions only help in the Old regime. On the New regime you keep just two: the ₹75,000 standard deduction and your employer's NPS contribution under 80CCD(2) (allowed in both regimes). So on the New regime your "tax saving" comes from employer NPS and salary structuring, not from 80C investments.