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
Deductions only help in the Old regime. If you're on the New regime, the only lever is the standard deduction — so your "tax saving" comes from employer NPS (80CCD(2)) and structuring, not investments.