Who This Scenario Is For
A 15 LPA salary represents a senior professional income in India — typical for senior software engineers with 5-8 years of experience, engineering managers, senior analysts, product managers, or specialist roles in top-tier tech companies, consulting firms, and financial services.
At this income level, choosing between the old and new tax regime becomes critical. The difference can be ₹40,000 to ₹80,000 annually depending on your deductions. With strategic planning, you can significantly reduce your tax burden.
This scenario shows you exactly how much tax you'll pay under both regimes, what your take-home salary will be, and how to optimize your choice based on your situation.
Old vs New Regime - Quick Comparison
| Parameter | Old Regime (With Deductions) | New Regime (No Deductions) |
|---|---|---|
| Gross Salary | ₹15,00,000 | ₹15,00,000 |
| Standard Deduction | -₹50,000 | -₹50,000 |
| 80C Deductions (PF + ELSS/PPF) | -₹1,50,000 | ₹0 |
| HRA Exemption | -₹1,50,000 | ₹0 |
| Taxable Income | ₹11,50,000 | ₹14,50,000 |
| Income Tax | ₹1,63,800 | ₹1,35,200 |
| Tax Difference | New Regime Saves ₹28,600 per year (with basic deductions only) | |
Important: With only basic deductions (80C + HRA), new regime is better by ₹28,600. However, with additional deductions like home loan interest (₹2L), NPS (₹50K), and 80D (₹25-50K), old regime becomes better. See detailed comparison below.
Old Tax Regime - Detailed Calculation
Income & Deductions (Basic Scenario)
| Gross Annual Salary | ₹15,00,000 |
| Less: Standard Deduction | -₹50,000 |
| Income After Standard Deduction | ₹14,50,000 |
| Less: 80C (PF ₹21,600 + ELSS/PPF ₹1,28,400) | -₹1,50,000 |
| Less: HRA Exemption (Rent ₹25,000/month) | -₹1,50,000 |
| Taxable Income | ₹11,50,000 |
Tax Calculation
| Income Slab | Tax Rate | Taxable Amount | Tax |
|---|---|---|---|
| Up to ₹2.5 lakh | Nil | ₹2,50,000 | ₹0 |
| ₹2.5L - ₹5L | 5% | ₹2,50,000 | ₹12,500 |
| ₹5L - ₹10L | 20% | ₹5,00,000 | ₹1,00,000 |
| Above ₹10L | 30% | ₹1,50,000 | ₹45,000 |
| Total Tax | ₹1,57,500 | ||
| Add: 4% Cess | ₹6,300 | ||
| Total Tax Liability (Old Regime) | ₹1,63,800 | ||
With Additional Deductions (Optimized Scenario)
If you add home loan interest (₹2L), NPS 80CCD(1B) (₹50K), and 80D health insurance (₹25K), your taxable income drops to ₹9.25 lakh, reducing tax to approximately ₹1,10,000. This saves you ₹53,800 compared to basic old regime and ₹25,200 compared to new regime.
New Tax Regime - Detailed Calculation
Income & Deductions
| Gross Annual Salary | ₹15,00,000 |
| Less: Standard Deduction | -₹50,000 |
| Taxable Income (No other deductions allowed) | ₹14,50,000 |
Tax Calculation
| Income Slab | Tax Rate | Taxable Amount | Tax |
|---|---|---|---|
| Up to ₹3 lakh | Nil | ₹3,00,000 | ₹0 |
| ₹3L - ₹7L | 5% | ₹4,00,000 | ₹20,000 |
| ₹7L - ₹10L | 10% | ₹3,00,000 | ₹30,000 |
| ₹10L - ₹12L | 15% | ₹2,00,000 | ₹30,000 |
| ₹12L - ₹15L | 20% | ₹2,50,000 | ₹50,000 |
| Total Tax | ₹1,30,000 | ||
| Add: 4% Cess | ₹5,200 | ||
| Total Tax Liability (New Regime) | ₹1,35,200 | ||
Monthly Take-Home Salary Comparison
| Component | Old Regime (Basic) | New Regime | Old Regime (Optimized) |
|---|---|---|---|
| Monthly Gross Salary | ₹1,25,000 | ₹1,25,000 | ₹1,25,000 |
| Less: PF (Employee) | -₹1,800 | -₹1,800 | -₹1,800 |
| Less: Professional Tax | -₹200 | -₹200 | -₹200 |
| Less: Income Tax (Monthly) | -₹13,650 | -₹11,267 | -₹9,167 |
| Monthly In-Hand Salary | ₹1,09,350 | ₹1,11,733 | ₹1,13,833 |
| Annual Take-Home | ₹13,12,200 | ₹13,40,796 | ₹13,65,996 |
Best Option: Old regime with optimized deductions (home loan + NPS + health insurance) gives you ₹1,13,833 monthly in-hand — ₹2,100 more than new regime and ₹4,483 more than basic old regime.
Understanding the Comparison
Which Regime Should You Choose?
Choose New Regime If:
- You have no HRA exemption (live with parents or own home)
- You don't have a home loan
- You don't want to invest in 80C instruments
- You prefer simplicity over tax optimization
- Your only deduction is basic 80C (₹1.5L)
Tax savings with new regime: ₹28,600 annually compared to basic old regime.
Choose Old Regime If:
- You have home loan — interest deduction up to ₹2 lakh
- You pay high rent and can claim HRA exemption
- You invest in NPS (additional ₹50K under 80CCD(1B))
- You pay health insurance for self and parents (₹25-75K under 80D)
- You have education loan (interest fully deductible under 80E)
Tax savings with optimized old regime: ₹25,200 annually compared to new regime.
Key Deductions to Maximize at 15 LPA
| Deduction | Limit | Tax Saving (at 30% slab) |
|---|---|---|
| 80C (PF + ELSS + PPF + LIC) | ₹1,50,000 | ₹45,000 |
| HRA Exemption | ₹1,50,000 (approx) | ₹45,000 |
| 80CCD(1B) - NPS | ₹50,000 | ₹15,000 |
| 80D - Health Insurance | ₹25,000-75,000 | ₹7,500-22,500 |
| 24(b) - Home Loan Interest | ₹2,00,000 | ₹60,000 |
| 80E - Education Loan Interest | No limit | Varies |
| Total Potential Deductions | ₹5,25,000+ | ₹1,50,000+ |
HRA Exemption at 15 LPA
With ₹6 lakh basic (40% of 15 LPA) and ₹25,000 monthly rent in a metro:
- Actual HRA received: ₹3,00,000 (50% of basic)
- Rent paid minus 10% of basic: ₹3,00,000 - ₹60,000 = ₹2,40,000
- 50% of basic (metro): ₹3,00,000
- HRA exemption = Minimum = ₹2,40,000
However, typical HRA exemption at this salary is around ₹1,50,000 depending on rent and basic split.
Can You Switch Between Regimes?
Yes! Salaried individuals can choose their preferred regime every financial year when filing ITR. Evaluate your deductions annually and choose the regime that minimizes your tax liability. If your situation changes (buy a house, get married, have kids), recalculate to ensure you're in the optimal regime.
Calculate Your Exact Tax Liability
Your optimal tax strategy depends on your specific deductions, rent, home loan, and investments. Use our calculator to compare both regimes with your exact numbers.
Use Tax CalculatorFrequently Asked Questions
Is 15 LPA a good salary in India in 2026?
Yes, 15 LPA is in the top 5-10% of Indian salaries and considered upper-middle class. After taxes and PF, you take home ₹1,10,000-1,14,000 monthly. With ₹30,000 rent and ₹40,000 expenses, you can save ₹40,000-50,000/month comfortably.
How much tax do I actually pay at 15 LPA?
With new regime and no extra deductions: ₹1,35,200 annually (₹11,267/month). With old regime and home loan + NPS + health insurance: ₹1,10,000 annually (₹9,167/month). The difference is ₹25,200 annually with optimized old regime.
Should I buy a house just for tax savings at 15 LPA?
No. Home loan interest deduction saves you ₹60,000 in taxes (on ₹2L interest), but you're paying ₹2L in interest. Buy a house for wealth building and stability, not tax savings. Tax benefit is a bonus, not the primary reason.
Is NPS worth it for tax savings?
At 30% tax bracket, ₹50,000 NPS investment saves ₹15,000 in taxes. However, NPS has restrictions — locked till 60, partial withdrawals limited, 40% must be used for annuity. If you're comfortable with these, it's a good retirement + tax saving tool.
What if I have no HRA component in salary?
If your salary has no HRA component, you cannot claim HRA exemption even if you pay rent. Ask your employer to restructure salary to include HRA (typically 40-50% of basic). This is standard in most companies and helps with tax planning.
Can I claim HRA if I rent from my parents?
Yes, but you need a proper rent agreement, and your parents must declare this rental income in their tax returns. Transfer rent via bank (not cash). If parents' total income including rent is below taxable limit, they won't pay tax but you can still claim HRA exemption.
How much should I invest to maximize tax savings?
At 15 LPA in old regime: Max 80C (₹1.5L) + NPS (₹50K) + health insurance (₹25-75K) = ₹2.25-3 lakh. Add home loan interest (₹2L), total deductions can be ₹4-5 lakh, bringing taxable income to ₹9-10 lakh and significantly reducing tax.
Do I need a CA for tax planning at this salary?
Not mandatory, but recommended. A CA costs ₹3,000-5,000 for ITR filing and can help you save ₹20,000-50,000 annually through proper deduction planning and regime selection. At 15 LPA, professional tax advice pays for itself multiple times over.