Income Tax News: Old Tax Regime vs New Tax Regime – Which is Better for Salaried Individuals Earning ₹15 Lakh? Check Here

Income Tax News: The process of filing Income Tax Returns (ITR) for the financial year 2025-26 began on April 1, 2025. With this, many taxpayers are facing the dilemma of whether to opt for the old tax regime or the new tax regime. For salaried individuals earning an annual income of ₹15 lakh, choosing the right tax regime can significantly impact their tax liability. This article will help you understand which option is more beneficial for you.

Understanding the Income Tax Slabs for 15 Lakh Salary

Both the old and new tax regimes impose a 30% tax rate on income above ₹10 lakh and ₹15 lakh, respectively. However, the key difference lies in the availability of deductions and exemptions. Let’s analyse which tax slab offers better savings for a salaried individual earning ₹15 lakh.

Old Tax Regime: Tax Calculation for ₹15 Lakh Salary

Under the old tax regime, an individual can reduce their taxable income by claiming various deductions. Here’s how:

1. Standard Deduction – ₹50,000 is deducted from the salary.

   • ₹15,00,000 - ₹50,000 = ₹14,50,000 (Taxable income)

2. Section 80C Deductions – ₹1.5 lakh deduction for investments in EPF, PPF, ELSS, or life insurance premiums.

   • ₹14,50,000 - ₹1,50,000 = ₹13,00,000

3. Additional NPS Deduction (80CCD(1B)) – ₹50,000 for National Pension System contributions.

   • ₹13,00,000 - ₹50,000 = ₹12,50,000

4. Home Loan Interest Deduction (Section 24B) – ₹2 lakh deduction for home loan interest.

   • ₹12,50,000 - ₹2,00,000 = ₹10,50,000

5. Health Insurance Premium (Section 80D) – ₹25,000 for self, spouse, and children. An additional ₹25,000 can be claimed if parents are insured.

   • ₹10,50,000 - ₹50,000 = ₹10,00,000

Final Tax Payable under the Old Tax Regime:

After all these deductions, the taxable income comes down to ₹10 lakh, and the tax payable is ₹1,17,000.

New Tax Regime: Tax Calculation for ₹15 Lakh Salary

Under the new tax regime, most deductions are not allowed. However, there is a standard deduction of ₹75,000.

1. Standard Deduction – ₹75,000 deducted from ₹15 lakh.

   • ₹15,00,000 - ₹75,000 = ₹14,25,000

2. Income Tax Calculation – Based on the new tax slab, the total tax payable is ₹1,30,000.

Which Tax Regime is Better for ₹15 Lakh Salary?

Old Tax Regime is Better if You Claim Deductions

• If you invest in EPF, PPF, ELSS, NPS, or have a home loan, you can reduce taxable income by ₹4.50 lakh.

• This brings down the tax liability to just ₹1,17,000—lower than the ₹1,30,000 tax under the new regime.

• So, the old tax regime is the best choice for those who can claim deductions.

New Tax Regime is Better for Those Who Do Not Invest

• If you do not make any tax-saving investments, your taxable income under the old regime remains ₹15 lakh.

• This results in a tax liability of ₹2,57,400.

• In contrast, under the new tax regime, the tax liability is only ₹1,30,000.

• This means you save ₹1,27,400 under the new tax regime if you don’t claim deductions.

For salaried individuals earning ₹15 lakh, the best option depends on your financial habits. If you claim deductions, the old tax regime helps you save more. But if you prefer a hassle-free tax system, the new tax regime is better.