Which Tax Regime Is Better for ₹15 Lakh Income in India?
Which Tax Regime Is Better for ₹15 Lakh Income in India?
Old vs New Regime Explained for FY 2024–25 | AY 2025–26
One of the most common tax planning dilemmas today is:
“Should I choose the old tax regime or the new tax regime if my income is ₹15 lakh?”
The answer? It depends on your deductions.
In this article, we'll help you decide the better tax regime based on the benefits, deductions, and slab rates, specifically for ₹15 lakh annual income.
🧾 Step 1: Know the Tax Slabs
🔹 New Tax Regime (FY 2024–25)
| Income Slab | Tax Rate |
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹6,00,000 | 5% |
| ₹6,00,001 – ₹9,00,000 | 10% |
| ₹9,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
✅ Standard deduction of ₹50,000 is allowed under the new regime.
🔹 Old Tax Regime
| Income Slab | Tax Rate |
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
✅ You can claim deductions like:
• ₹1.5L under 80C (PPF, ELSS, LIC, etc.)
• ₹50,000 under 80D (health insurance)
• HRA, LTA, education loan, home loan interest, etc.
🧮 Step 2: Tax Comparison at ₹15 Lakh Income
✅ New Regime (Assuming no deductions except standard deduction)
| Income | ₹15,00,000 |
| Less: Standard Deduction | ₹50,000 |
| Taxable Income | ₹14,50,000 |
| Tax (as per slab) | ₹1,50,000 (approx.) |
| Add: Cess @ 4% | ₹6,000 |
Total Tax = ₹1,56,000
✅ Old Regime (Assuming ₹2.5L deductions)
| Income | ₹15,00,000 |
| Less: Deductions (80C, 80D, etc.) | ₹2,50,000 |
| Less: Standard Deduction | ₹50,000 |
| Taxable Income | ₹12,00,000 |
| Tax (as per slab) | ₹1,65,000 |
| Add: Cess @ 4% | ₹6,600 |
Total Tax = ₹1,71,600
✅ Old Regime (Assuming ₹3.5L deductions)
| Total deductions (incl. 80C, 80D, HRA, etc.) | ₹3,50,000 |
| Taxable Income | ₹11,00,000 |
| Tax (slab-wise) Cess | ₹1,43,000 (approx.) |
🎯 Which Regime Is Better for ₹15 Lakh Income?
| Your Deductions | Better Regime |
| Less than ₹2 lakh | ✅ New Regime |
| ₹2.5 – ₹3 lakh | Depends (very close) |
| More than ₹3 lakh | ✅ Old Regime |
Final Words
For a salary of ₹15 lakh, the New Tax Regime is better if you don’t claim many deductions.
But if you actively invest in 80C, 80D, pay rent (HRA), or home loan interest, the Old Regime will help you save more.
Let our experts compare both regimes based on your deductions and help you pick the most tax-efficient option.
👉 https://callmyca.com/business-tax-filing
