How to Pay Zero Tax on ₹15 Lakh Salary?
How to Pay Zero Tax on ₹15 Lakh Salary?
Smart Tax Planning Under Old Regime for FY 2024–25 | AY 2025–26
If you earn a salary of ₹15,00,000 annually, you might think paying high taxes is inevitable. But what if we told you that with strategic tax planning, it's possible to bring your tax liability close to zero, or even eliminate it?
“Can I legally pay 0 tax on ₹15 lakh salary?”
Yes, especially under the old tax regime, if you use all the available deductions effectively.
✅ Step 1: Choose the Right Tax Regime
To reduce your tax to zero, you must opt for the old tax regime, which allows a wide range of deductions, like:
• Section 80C
• Section 80D
• Home loan interest (Section 24)
• HRA
• NPS (80CCD(1B))
• Education loan interest (80E)
The new regime, although offering lower slab rates, disallows most of these benefits.
🧾 Step 2: Use All Possible Deductions
Here’s how you can legally reduce your taxable income from ₹15L to ₹5L or below and claim a full tax rebate under Section 87A.
| Deduction Type | Max Amount (₹) |
| Standard Deduction (automatic) | ₹50,000 |
| Section 80C (PF, PPF, LIC, ELSS, etc.) | ₹1,50,000 |
| Section 80D (Health Insurance) | ₹75,000 (with senior parents) |
| Section 24(b) – Home Loan Interest | ₹2,00,000 |
| HRA Exemption (approx.) | ₹1,00,000 |
| NPS – Section 80CCD(1B) | ₹50,000 |
| Education Loan Interest (80E) | ₹1,00,000 (example) |
| Total Deductions | ₹7,25,000 or more |
🧮 Taxable Income After Deductions
| Particulars | Amount (₹) |
| Gross Salary | ₹15,00,000 |
| Less Deductions (Total) | ₹7,25,000 |
| Net Taxable Income | ₹7,75,000 |
Now, let's say you have additional eligible deductions (like LTA, 80G donations, or more HRA), you may be able to bring net income under ₹5,00,000, and qualify for Section 87A rebate.
🔹 What is Section 87A?
If your net taxable income after deductions is ₹5,00,000 or less, you get a 100% rebate on tax liability up to ₹12,500. This means zero tax.
🧠 Real-Life Example
Let’s assume:
• You contribute to EPF + PPF = ₹1.5L
• Health Insurance (family + senior citizen parents) = ₹75K
• Home loan interest = ₹2L
• HRA exemption = ₹1L
• NPS contribution = ₹50K
• Education loan interest = ₹1L
Total deductions = ₹6.75–₹7.25 lakh
Taxable income = ₹ 7.75 L → Further savings or donations can bring it under ₹ 5 L
➡️ Final Tax = ₹0
📌 Pro Tips to Reach Zero Tax Legally
• Start investing early in the year to avoid last-minute stress
• Use ELSS mutual funds to combine tax saving with wealth creation
• Pay health insurance premiums yearly to maximize 80D benefits
• Use home loan strategically—both interest and principal offer deductions
• Don’t forget education loans and donations if applicable
• Keep rent receipts for HRA exemption
✅ Final Words
With disciplined planning, salaried individuals earning ₹15 lakh can legally reduce their tax liability to zero using deductions under the old regime.
You don’t need to hide income—you just need to plan it right.
