Income Tax on 15 Lakh Salary

Income Tax On 15 Lakh Salary

Learn how income tax on a ₹15 lakh salary is calculated and which tax regime can help reduce your tax liability

Written by : Knowledge Centre Team

2025-12-25

724 Views

5 minutes read

Exit Pop Up

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
DOB is required DOB should be Valid
Annual Income is required
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

Please enter correct name Please enter the Full name
Please enter valid mobile number Please enter Mobile Number
Please enter valid email Please enter Email
Consent is required

Enter OTP

An OTP has been sent to your mobile number

Didn’t receive OTP?

Application Status

Name

Date of Birth

Plan Name

Status

Unclaimed Amount of the Policyholder as on

Name of the policy holder

Policy Holder Name

Policy No.

Policy Number

Address of the Policyholder as per records

Address

Unclaimed Amount

Unclaimed Amount
Error

Sorry ! No records Found

.  Please use this ID for all future communications regarding this concern.

Request Registered

Thank You for submitting the response, will get back with you.

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 SlabTax 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 SlabTax 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.

Recent Blogs

What Is Tax Liability? Meaning, Calculation & Examples
05 Mar '26
1995 Views
7 minute read
Tax liability is the total tax payable after deductions and exemptions. Learn its meaning, how to calculate tax liability and how it affects ITR filing in India with examples for individuals.
Read More
Tax Saving
FATCA Declaration: Meaning, Eligibility & Filing Guide
25 Feb '26
68 Views
6 minute read
Understand FATCA declaration requirements, who must submit it, reporting rules for foreign financial assets, and why compliance is important for Indian taxpayers.
Read More
Tax Saving
Income Tax Rates in India: Latest Slabs & Comparison Guide
25 Feb '26
81 Views
6 minute read
Explore current income tax rates under old and new regimes, slab-wise comparisons, and practical tips to select the most suitable tax regime for your income profile.
Read More
Tax Saving
Short Term Capital Gains Tax & Calculation | STCG Tax India
23 Feb '26
10716 Views
11 minute read
Understand short term capital gains tax in India. Know how STCG is taxed, rates, and calculation for different assets under current tax rules.
Read More
Tax Saving
What Is TAN? How to Apply for TAN in India
23 Feb '26
1960 Views
10 minute read
What is TAN? Understand its structure, importance, and how to apply for a Tax Deduction and Collection Account Number (TAN) easily in 2026.
Read More
Tax Saving
What is EPF Form 10C? Meaning, Benefits, Eligibility
23 Feb '26
1416 Views
6 minute read
Learn about EPF Form 10C. Its meaning, benefits, and eligibility. Find out how submit form 10C online and how can help you with your Employee Provident Fund.
Read More
Tax Saving
Import Tax in India: Why Imports Are Heavily Taxed?
23 Feb '26
1973 Views
6 minute read
Understand why imports are heavily taxed in India, how import tax works, and the economic and policy reasons behind high import duties.
Read More
Tax Saving
Expenditure Tax in India: Meaning, Applicability & Examples
23 Feb '26
115 Views
6 minute read
Understand the concept of expenditure tax in India, when it applies, sectors affected, calculation approach, and practical examples to clarify its financial implications.
Read More
Tax Saving
TDS on Foreign Remittances: Rates, Limits & Rules Explained
23 Feb '26
40 Views
7 minute read
Learn how TDS applies to foreign remittances under LRS, applicable rates, thresholds, exemptions, and how these deductions affect your overseas payments and tax filing.
Read More
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