Income Tax on 15 Lakh Salary: New Regime 2025

Written by : Knowledge Centre Team

2025-12-25

722 Views

5 minutes read

Locate branch

Resume journey

Pay Premium

Live Life More Confidently

Get best insurance from our experts

Name is required Name should be Valid

Mobile Number is required Mobile Number should be Valid

Email is required Email should be Valid

DOB is required DOB should be Valid

Annual Income*

< 3 3-5 5-7 7-10 > 10

Annual Income is required

I agree that even if my contact number is registered with NDNC / NCPR, I would still want the Company to contact me on the given number and email id for the clarifications/product information sought by me and agree that I have read and understood the Privacy Policy and agree to abide by the same.

Please tick to proceed further.

Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

Earning an annual salary of ₹15 lakh is often seen as a sign of financial comfort. It offers greater financial flexibility but also demands smarter tax planning. Speaking of that, you must be aware that tax calculations do not depend solely on your earnings. The regime you select and the deductions you claim impact your net taxable income equally.

By understanding how income tax on a ₹15 lakh salary works, you can take timely steps to manage your liabilities and align your broader financial goals accordingly. This guide explains income tax for a ₹15 lakh salary in a structured, straightforward way to help you plan smarter for the year ahead.

Key Takeaways

Income tax on a ₹15 lakh salary depends on the tax regime you choose
The new tax regime offers lower slab rates with fewer deductions
The old tax regime allows multiple deductions that can reduce taxable income
Standard deduction applies under both tax regimes
ULIPs with high premiums attract capital gains tax under new rules

How is Income Tax on a ₹15 lakh Salary Calculated?

Income tax on salary is calculated after deducting eligible exemptions and deductions from your gross income. Once the taxable income is determined, slab rates are applied based on the chosen tax regime. Currently, taxpayers can choose between the old and new tax regimes. Both follow different slab structures and deduction rules, which directly affect the final tax payable.

Maximize Your Tax Savings - Talk to an Expert

Full Name* Please enter correct name Please enter the Full name

Mobile Number* Please enter valid mobile number Please enter Mobile Number

Email* Please enter valid email Please enter Email

...Read more Consent is required

Income Tax Rate Under the New Tax Regime

The new tax regime offers lower slab rates but allows limited deductions. A standard deduction of ₹75,000 is available, reducing the taxable income to ₹14.25 lakh. Here’s the latest tax rate structure:

Income Slab	Tax Rate
Up to ₹4,00,000	Nil
₹4,00,001 to ₹8,00,000	5%
₹8,00,001 to ₹12,00,000	10%
₹12,00,001 to ₹16,00,000	15%
₹16,00,001 to ₹20,00,000	20%
₹20,00,001 to ₹24,00,000	25%
₹24,00,001 and above	30%

Income Tax Rate Under the Old Tax Regime

The old tax regime allows multiple deductions and exemptions, which can significantly reduce taxable income if planned well. Common deductions include Section 80C investments up to ₹1.5 lakh, health insurance premiums under Section 80D, house rent allowance, and standard deduction of ₹50,000.

Assuming total deductions of ₹2 lakh, including standard deduction, the taxable income reduces to almost ₹13 lakh. Here’s what the tax rates look like under the old regime:

Income Slab	Tax Rate
Up to ₹2,50,000	Nil
₹2,50,001 to ₹5,00,000	5%
₹5,00,001 to ₹10,00,000	20%
Above ₹10,00,000	30%

Which Tax Regime is Better for a ₹15 lakh Salary?

The right regime depends on your financial habits. If you regularly invest in tax-saving instruments, pay insurance premiums, or claim housing benefits, the old regime may still work for you.

If you prefer simplicity and do not want to lock money into long-term tax-saving options, the new regime usually offers lower tax liability at a ₹15 lakh salary level.

For example, consider yourself as a salaried professional earning ₹15 lakh who invests ₹1.5 lakh under Section 80C, pays health insurance premiums, and claims standard deductions. These deductions significantly reduce taxable income, thereby lowering the overall tax payable under the old regime.

On the other hand, if you prefer a more straightforward approach and do not wish to lock money into long-term tax saving options, the new tax regime may be more suitable. A professional with minimal deductions may find that the lower slab rates under the new regime result in a lower tax outgo, even without multiple exemptions.

Comparing the two regimes using your actual income and expenses helps you choose the option that best aligns with your financial goals and lifestyle. Using an income tax calculator can help compare both options before making a final choice.

How Life Insurance Helps Reduce Tax Burden?

Life insurance serves dual roles in tax planning and financial protection. Premiums paid for eligible life insurance policies qualify for Section 80C deductions, subject to limits. In addition, maturity proceeds and death benefits may also be tax-exempt under Section 10 (10D).

However, if you opt for retirement or long-term savings plans, such as ULIP, there are different taxes you should be aware of. Recently, it was announced that ULIPs with premiums exceeding ₹25 lakh will attract a long-term capital gains tax of 12.5%, effective from April 1, 2026.

Planning life insurance early helps create financial security for your family while supporting long-term tax efficiency. At Canara HSBC Life Insurance, life cover solutions are designed to align protection goals with disciplined financial planning.

Conclusion

Income tax on a ₹15 lakh salary varies depending on the chosen tax regime and the deductions claimed. The new tax regime generally results in lower tax outgo for individuals with fewer deductions, while the old regime rewards structured tax planning. Understanding both options allows you to retain more of your income and plan confidently for future goals.

Making informed choices today can help ensure financial stability and peace of mind tomorrow.

FAQs

Yes, salaried individuals can choose between old and new tax regimes each financial year.

Most exemptions, including HRA, are not available under the new tax regime.

All salary components are added to compute gross income before deductions are applied.

It helps when premiums qualify for deductions under applicable sections and limits.

Health insurance premiums can reduce taxable income under Section 80D in the old regime.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.

Income Tax on 5 Lakh Salary: New Regime 2025–26

Why is Your ITR Refund Delayed and What Can You Do?

Recent Blogs

Dividend Tax Explained: Dividend Distribution Tax in India

18 Feb '26

1105 Views

8 minute read

Understand what dividend distribution tax(DDT) is, how dividend tax works in India, who pays dividend tax, and how it is taxed under income tax laws.

Tax Saving

Income Tax Act 1961: Overview, Key Provisions and Applicability

17 Feb '26

1177 Views

12 minute read

Learn about the Income Tax Act 1961, its purpose, key provisions, applicability, and how it governs income tax laws in India.

Tax Saving

Types of Allowances in Salary: Definition, and Taxation Rules

11 Feb '26

1206 Views

6 minute read

Learn about various allowances like HRA, travel, medical, and special allowances, and understand their tax treatment and exemptions to optimise salary taxation.

Tax Saving

Penalty for Late Filing of Income Tax Returns (ITR) in 2026

11 Feb '26

1133 Views

7 minute read

Avoid penalties for late ITR filing! Learn about the financial and legal implications of missing deadlines and how to file on time.

Tax Saving

HUF Taxation Explained: Benefits, Rules & How to Save Tax

11 Feb '26

112 Views

7 minute read

Learn how HUF taxation works in India, eligibility rules, tax benefits, deductions, and how Hindu Undivided Families can save income tax legally.

Tax Saving

What is IGST? Meaning, Rates and Calculation Explained

11 Feb '26

210 Views

7 minute read

Understand IGST, its full form, when it applies, current rates, and how to calculate Integrated GST for inter-state transactions in India.

Tax Saving

What is CGST? Meaning, Rates & Features Explained

11 Feb '26

160 Views

7 minute read

Learn what CGST means, its full form, key features, tax rates, and how Central GST is applied under India’s GST framework.

Tax Saving

Income Tax Rebate in India: Rules, Limits and Eligibility

10 Feb '26

1938 Views

8 minute read

Get money back with Income Tax Rebate! Learn what an income tax rebate is, who is eligible, applicable sections, limits, and how taxpayers in India can claim the rebate.

Tax Saving

Tax Collected at Source (TCS): Payment, Exemption & Rates

10 Feb '26

1059 Views

7 minute read

Learn about Tax Collected at Source (TCS), payment exemptions, and rates. Explore key details with Canara HSBC Life Insurance for smarter tax planning insights.

Tax Saving

Tax Savings - Top Selling Plans

We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.

Family Shield: Enhanced Protection

iSelect Smart360 Term Plan

3 Plan options
Life cover till 99 years
Steady income benefit
Block your premium at inception

Fixed Returns, Zero Risks & Worries

iSelect Guaranteed Future Plus

4 Plan options
Life cover + Guaranteed benefits
Accidental death benefit
Premium protection cover

Start Young, Pay Less, Stay Secured

Young Term Plan

Life cover till 99 years
Coverage for spouse
Block your premium rate
Covers 40 critical illness

Popular Searches

Reinstate Your Lapsed Policy

Mandatory KYC Update as per PML Rules 2005

We Stand with Families Affected by the Ahemdabad Plane Crash