Income Tax on ₹15 Lakh Salary: New vs Old Regime Breakeven Analysis
By Pradipta Ray · Published
At an annual CTC of ₹15,00,000, income tax is a major financial planning consideration. Here is the verified AY 2026-27 statutory tax calculation comparing New and Old Regimes for salaried employees.
For salaried taxpayers with gross income of ₹15,00,000, selecting the appropriate tax regime has a significant impact on net annual savings. The New Tax Regime incorporates updated slab structures and an enhanced ₹75,000 standard deduction for salaried individuals.
Direct Answer: On a ₹15 Lakh simple salaried income, you pay ₹97,500 in total tax under the New Regime (taxable income ₹14,25,000 after ₹75,000 standard deduction). Under the Old Regime without deductions, you pay ₹2,67,800. The New Regime saves ₹1,70,300 automatically unless your deductions exceed ₹5.45 Lakh. (Assumes salary income only, no surcharge, 4% cess).
Tax Breakdown on ₹15 Lakh Salary (AY 2026-27)
| Parameter | New Regime (Default) | Old Regime (No Deductions) | Old Regime (Max ₹4L Deductions) |
|---|---|---|---|
| Gross Income | ₹15,00,000 | ₹15,00,000 | ₹15,00,000 |
| Standard Deduction | -₹75,000 | -₹50,000 | -₹50,000 |
| Eligible Exemptions (80C, 80D, HRA) | ₹0 | ₹0 | -₹4,00,000 |
| Taxable Income | ₹14,25,000 | ₹14,50,000 | ₹10,50,000 |
| Base Tax | ₹93,750 | ₹2,57,500 | ₹1,37,500 |
| 4% Cess | ₹3,750 | ₹10,300 | ₹5,500 |
| Total Tax Outflow | ₹97,500 | ₹2,67,800 | ₹1,43,000 |
Step-by-Step New Regime Slab Calculation
Under the official AY 2026-27 New Tax Regime slabs (Section 115BAC), tax on ₹14,25,000 taxable income is computed in tiers: ₹0–4L at 0% (₹0), ₹4–8L at 5% (₹20,000), ₹8–12L at 10% (₹40,000), and ₹12–14.25L at 15% (₹33,750 on ₹2,25,000). Total income tax equals ₹93,750 plus 4% Health and Education Cess (₹3,750), producing exactly ₹97,500.
Important Assumptions & Applicability
These figures assume salary income only, statutory ₹75,000 standard deduction, new tax regime election, zero special-rate income (such as lottery or capital gains), no surcharge, and 4% cess. They illustrate standard salaried taxation and should not be presented as universal tax payable for every taxpayer with complex portfolio incomes.
Smart Tax Moves for ₹15 Lakh Earners
Leverage Corporate NPS (Section 80CCD(2)): You can deduct up to 10% (or 14% for government employees) of your basic salary under the New Regime, saving additional tax.
Check your tax regime election on payroll in April so that HR does not withhold excess TDS under the Old Regime.
Evaluate whether large rent payments or housing loans justify the Old Regime, or whether the streamlined New Regime provides greater net take-home pay.
Frequently asked questions
What is the tax on a ₹15 Lakh salary under the New Tax Regime?
What is the breakeven deduction needed on a ₹15 Lakh salary?
What is the monthly in-hand salary on ₹15 Lakh CTC?
Calculators for this
Related reading
Comprehensive comparison between Old and New Tax Regimes for AY 2026-27. Understand breakeven deduction thresholds across income levels and choose correctly.
Calculate income tax on a ₹10 Lakh salary in India for AY 2026-27. Compare New vs Old Regime, standard deduction, and see which option saves you more money.
Calculate income tax on a ₹20 Lakh salary in India for AY 2026-27. Compare New vs Old Regime, calculate exact TDS, and learn how to optimize corporate NPS under Sec 80CCD(2).
Authoritative Sources
- Income Tax Department Annual Tax Tables (AY 2026-27)· verified 1 August 2026
- Ministry of Finance Direct Tax Guidelines· verified 1 August 2026