How to Pay Zero Tax on ₹15 Lakh Salary in the New Tax Regime

Zero Tax on ₹15 Lakh Salary:

With the new tax regime introduced for the financial year 2025-26, it is possible for salaried individuals to reduce their tax liability, even to zero, on a ₹15 lakh income. While the standard income tax regime has higher tax rates, the new tax rules provide several exemptions and deductions that can help you pay zero tax on a ₹15 lakh salary.

Zero Tax on ₹15 Lakh Salary:

Key Tax Slabs in the New Regime

Under the new tax regime for FY 2025-26, the income tax slabs are structured as follows:

Up to ₹4,00,000: NIL
₹4,00,001 – ₹8,00,000: 5%
₹8,00,001 – ₹12,00,000: 10%
₹12,00,001 – ₹16,00,000: 15%
₹16,00,001 – ₹20,00,000: 20%
₹20,00,001 – ₹24,00,000: 25%
Above ₹24,00,000: 30%

4 Ways to Make ₹15 Lakh Salary Tax-Free

1. Standard Deduction

In the new tax regime, a standard deduction of ₹75,000 is available. This means if your income is ₹15,00,000, you can subtract ₹75,000, bringing your taxable income down to ₹14,25,000.

2. NPS (National Pension System) Benefits

Under Section 80CCD(2), you can claim tax benefits on the employer’s contribution to your NPS account. If your basic pay is ₹7,50,000, the maximum tax benefit from NPS can be ₹1,05,000. After applying this, your taxable income will be ₹13,20,000.

3. EPF (Employees’ Provident Fund) Benefits

The new tax regime also allows a deduction on employer contributions to your EPF. If your basic pay is ₹7,50,000, the maximum tax benefit from EPF can be ₹90,000. This reduces your taxable income further to ₹12,30,000.

4. Reimbursements on Entertainment and Food

Certain reimbursements, such as entertainment and food bills, can be included in your salary, reducing your taxable income. For example, ₹30,000 worth of entertainment and food bills can bring your taxable income down to ₹12,00,000.

Applying the Tax Rebate

According to the new tax slabs, tax on a ₹12 lakh income is ₹60,000. However, under Section 87A, you can claim a rebate of up to ₹60,000, which means that for a ₹12 lakh income, your tax liability becomes zero.

By strategically using the standard deduction, NPS, EPF contributions, and reimbursements, a salaried individual earning ₹15 lakh can significantly reduce their taxable income, potentially making their income tax-free.

Disclaimer: This is not financial advice. Please consult a professional for personalized tax planning.

Also Read: THIS Country Stands Alone in Food Self-Sufficiency, Says Study- Not China or Japan