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- How Much Tax to Pay on a 15 Lakh Salary?
- Frequently Asked Questions
Income Tax Slabs Under the Old Income Tax Regime and New Income Tax Regime
Old Tax Regime
| Income Tax 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% |
New Tax Regime (FY 20-21, FY 21-22 & FY 22-23)
| Income Tax Slab | Tax Rate |
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹7,50,000 | 10% |
| ₹7,50,001 – ₹10,00,000 | 15% |
| ₹10,00,001 – ₹12,50,000 | 20% |
| ₹12,50,001 – ₹15,00,000 | 25% |
| Above ₹15,00,000 | 30% |
New Tax Regime ( From FY 23-24)
| Income Tax 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% |
Check Current Income Slabs and Tax Rates in 2024
How Much Tax to Pay on a 15 Lakh Salary?
Let’s take an example to understand the taxation of INR 15 lakh salary under old and new tax regime, and see which one is more beneficial. Ms Bharati earns a gross salary of INR 15,00,000. The following tables show Ms Bharati’s tax liability under the old and new tax regime.
Old Tax Regime
| Gross Salary (A) | ₹15,00,000 |
| Less (Exemptions) | |
| HRA | ₹1,00,000 |
| LTA | ₹40,000 |
| Reimbursem*nts (Food + Mobile/ Internet) | ₹24,000 |
| Children’s Education & Hostel Allowance | ₹9,600 |
| Standard Deduction | ₹50,000 |
| Professional Tax | ₹2,400 |
| Total Exemptions (B) | ₹2,26,000 |
| Less (Deductions) | |
| 80C | ₹1,50,000 |
| 80D | ₹25,000 |
| Section 24b | ₹50,000 |
| Total Deductions (C ) | ₹2,25,000 |
| Net Taxable Income (A-B-C) | ₹10,49,000 |
| Up to ₹2,50,000 (Nil) | ₹0 |
| ₹2,50,001 – ₹5,00,000 (5%) | ₹12,500 |
| ₹5,00,001 – ₹10,00,000 (20%) | ₹1,00,000 |
| Above ₹10,00,000 (30%) | ₹14,700 |
| Total Tax Payable | ₹1,27,200 |
New Tax Regime (FY 20-21, FY 21-22 & FY 22-23)
| Gross Salary (A) | ₹15,00,000 |
| Total Exemptions (B) | ₹0 |
| Total Deductions (C ) | ₹0 |
| Net Taxable Income (A-B-C) | ₹15,00,000 |
| Up to ₹2,50,000 (Nil) | ₹0 |
| ₹2,50,001 – ₹5,00,000 (5%) | ₹12,500 |
| ₹5,00,001 – ₹7,50,000 (10%) | ₹25,000 |
| ₹7,50,001 – ₹10,00,000 (15%) | ₹37,500 |
| ₹10,00,001 – ₹12,50,000 (20%) | ₹50,000 |
| ₹12,50,001 – ₹15,00,000 (25%) | ₹62,500 |
| Above ₹15,00,000 (30%) | ₹0 |
| Total Tax Payable | ₹1,87,500 |
New Tax Regime (From FY 23-24)
| Gross Salary (A) | ₹15,00,000 |
| Less (Exemptions) | |
| Standard Deduction | ₹50,000 |
| Total Exemptions (B) | ₹50,000 |
| Total Deductions (C) | ₹0 |
| Net Taxable Income (A-B-C) | ₹14,50,000 |
| Up to ₹3,00,000 (Nil) | ₹0 |
| ₹3,00,001 – ₹6,00,000 (5%) | ₹15,000 |
| ₹6,00,001 – ₹9,00,000 (10%) | ₹30,000 |
| ₹9,00,001 – ₹12,00,000 (15%) | ₹45,000 |
| ₹12,00,001 – ₹15,00,000 (20%) | ₹50,000 |
| Above ₹15,00,000 (30%) | ₹0 |
| Total Tax Payable | ₹1,40,000 |
From the above example, under the old regime, Ms Bharati is liable to pay a tax of INR 1,27,200. Under the new regime, she will have to pay INR 1,87,500 till FY 22-23 and from FY 23-24, the net tax payable will be INR 1,40,000.
For Different Income Slabs
- Income Tax on 7 Lakh Salary
- Income Tax on 10 Lakh Salary
- Income Tax on 12 Lakh Salary
- Income Tax on 20 Lakh Salary
Frequently Asked Questions
How much tax should I pay for 15 lakhs?
You can pay zero tax on a salary of 15 lakhs, provided you have invested in tax savings options and claim applicable deductions and exemptions. Under the old regime, your net tax payable can be zero if you claim exemptions and invest in tax-saving schemes. In case you are following the new tax regime for FY 20-21, FY 21-22 & FY 22-23 the net tax payable amount will be INR 1,87,500. For FY 23-24 onwards, the net tax payable will be INR 1,40,000 (from the above example).
How to pay zero tax for income up to 10 lakhs?
To pay zero tax for income up to 10 lakhs, you must follow the old tax regime. Furthermore, you must take advantage of all the tax exemptions and invest in tax savings schemes that qualify for deductions for paying zero tax.
Can you save 100% on tax?
Yes, with good tax planning, it is possible to save 100% on tax. To save on tax, you need to invest in tax-saving options and also claim for all applicable exemptions.
How much income is tax-free according to the Income Tax Act?
Income up to INR 2,50,000 is tax-free. However, the Finance minister has increased the limit in the budget 2023. Now, under the new tax regime, income up to INR 3,00,000 is tax-free.
RELATED READS
- How to Save Maximum from Income Tax
- New Vs Old Tax Regime – Which is Best?
- What is Section 80 C of Income Tax
- Best Tax Saving Investments
- Best ELSS Mutual Funds 2024
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Posted on 24 Oct, 2023
Last updated October 24, 2023
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Sannihitha Ponaka is an MBA graduate from Symbiosis and has more than 5 years of experience in the financial sector. Following her dreams in the field of finance, she leverages writing to communicate the importance of investing. Your go-to guide to creating amazing and easily understood investment content. Her forte lies in investment advisory and strategy with expertise in fundamental analysis and research.
See all articles by SannihithaPonaka
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