0 Tax on Rs 15 Lakh Salary: Why your Rs 15 lakh salaried income can be tax-free in new tax regime

Income Tax Calculations: Earning a fat pay cheque is one ambition; paying no income tax on it is another. However, income tax increases as your income rises. But there are always ways to reduce the tax liability through exemptions and deductions. If you earn Rs 15 lakh in a financial year and harbour the ambition of paying 0 tax, it may not be easy, but it is not difficult either.

In the new tax regime applicable for the income earned in the financial year 2025-26, a salaried-class taxpayer needs to pay no tax on income up to Rs 12,75,000.

But if you earn Rs 15 lakh, the new regime provides some options that, if you use them, can make your income tax-free.

Know about 4 such tax benefits in the new tax regime that can make your Rs 15 lakh income tax-free.

New tax regime income slabs

National Pension System (NPS) tax benefits

The new tax regime offers deduction under Section 80CCD(2) of the Income Tax Act on the employer contribution to the employee's NPS corpus.

The maximum tax benefit thus allowed is 14 per cent of the employee's basic pay and dearness allowance (DA). 

There is no tax benefit on the employee contribution to their NPS account. 

E.g., if a salaried-class individual gets Rs 50,000 as basic pay and DA, the maximum NPS tax benefit they may get is Rs 7,000.

Employees' Provident Fund (EPF) tax benefits 

Under the new tax regime, employer contributions up to 12 per cent of an employee's basic salary and DA provide tax benefits.

There is no tax benefit on the employee's contribution to their EPF account. For an employee with Rs 50,000 as basic pay and DA, the maximum tax benefit can be Rs 6,000. 

Other tax benefits

Employees following the new tax regime can talk to their organistion's human resource (HR) officer and can ask them to make certain reimbursements as part of their salary.

Entertainment, food, petrol, and transport bills, where an employee has already paid tax, can be adjusted against their taxable amount. 

How to make Rs 15 salary tax-free

We are assuming that for an employee getting Rs 15 lakh as gross salary, the basic pay is Rs 7,50,000.

The salaried individual may get the benefit of standard deduction, NPS and EPF employer contribution, and entertainment and food bills to make their income tax-free. Here's how they may get it: 

Standard deduction 

The new tax regime offers a maximum standard deduction of Rs 75,000 allowed to new regime taxpayers.

After a Rs 75,000 standard deduction, the taxable income for a person earning Rs 15,00,000 remains to be Rs 14,25,000.

NPS tax benefit

On an Rs 7,50,000 basic salary, the maximum NPS tax benefit that the taxpayer can get is Rs 1,05,000.

After the standard deduction and the NPS tax benefit, the taxable income remains to be Rs 13,20,000.

EPF tax benefit

On an Rs 7,50,000 basic pay, the maximum EPF tax benefit will be Rs 90,000. After the standard deduction and NPS and EPF tax benefits, the taxable income is Rs 12,30,000.

Entertainment, food bills

On an Rs 7,50,000 basic pay, one may easily get included Rs 30,000 worth of entertainment and food bills in their salary. With that, the taxable income reduces to Rs 12,00,000.

Tax rebate

As per the new tax regime slabs for FY 25-26, the tax on a Rs 12 lakh income is Rs 60,000, but the government provides up to a Rs 60,000 rebate under Section 87A, after which the tax liability on a Rs 12 lakh income becomes zero.

This is how salaried-class individuals may make their Rs 15 lakh income tax-free.

(Disclaimer: This is not financial advice. Do your own due diligence or consult an expert for financial planning.)