₹15 lakh is the first salary where the old regime becomes a real calculation rather than an obvious no.
Corrected 29 August 2026. An earlier version of this page excluded target variable pay from both received cash and taxable salary, which understated income tax. Figures are recalculated under model PS-A3. What changed →
Short answer: on a ₹15 Lakh gross salary you pay ₹97,500 in income tax under the new regime for Tax Year 2026-27 and FY 2026-27 — an effective 6.5% of gross, or about ₹8,125 deducted as TDS each month.
New tax regime, Tax Year 2026-27 and FY 2026-27 · Rates and slabs are indicative, as of August 2026
Tax under the new regime is ₹97,500 — an effective 6.5% of gross. Taxable income is ₹14.25 L after the standard deduction.
The old regime beats this only if your total deductions exceed about ₹5.44 L. That is a demanding number. It means the full ₹1.5 lakh of 80C, plus ₹50,000 of NPS under 80CCD(1B), plus health insurance, plus roughly ₹2.5 lakh of HRA exemption or home loan interest.
If you rent in a metro on a high basic salary and have a home loan, you might clear it. If you rent modestly, or own outright, or live with family, you will not come close. Run both before choosing — the Income Tax Department publishes an official comparison calculator, linked below.
At this level a ₹1 lakh raise puts about ₹84,400 in your pocket after tax. Useful to know before deciding whether to push for salary or for something else.
The something else worth pushing for: employer NPS under 80CCD(2). It is deductible even under the new regime, up to 14% of your basic salary. On a ₹15 lakh package with ₹6 lakh basic, that is up to ₹84,000 a year moved out of taxable income entirely — worth more than the equivalent cash raise, and most employees never ask whether their company offers it.
| Step | Amount |
|---|---|
| Gross salary | ₹15,00,000 |
| Standard deduction (s.19(1) Table Sl. No. 2) | −₹75,000 |
| Taxable income | ₹14,25,000 |
| Slab tax (s.202) | ₹93,750 |
| Health and education cess (4%) | ₹3,750 |
| Total income tax | ₹97,500 |
| Gross salary after income tax | ₹14,02,500 |
This page starts from gross salary, not CTC. It shows income tax only — provident fund, professional tax and other payroll deductions are separate and excluded.
| Gross salary | Income tax | Effective rate | After income tax |
|---|---|---|---|
| ₹5 Lakh | ₹0 | 0.0% | ₹5.00 L |
| ₹7 Lakh | ₹0 | 0.0% | ₹7.00 L |
| ₹10 Lakh | ₹0 | 0.0% | ₹10.00 L |
| ₹12 Lakh | ₹0 | 0.0% | ₹12.00 L |
| ₹15 Lakh | ₹97,500 | 6.5% | ₹14.03 L |
| ₹20 Lakh | ₹1.92 L | 9.6% | ₹18.08 L |
| ₹25 Lakh | ₹3.20 L | 12.8% | ₹21.80 L |
| ₹30 Lakh | ₹4.76 L | 15.9% | ₹25.24 L |
| ₹50 Lakh | ₹11.00 L | 22.0% | ₹39.00 L |
| ₹1 Crore | ₹29.26 L | 29.3% | ₹70.74 L |
New regime, Tax Year 2026-27 and FY 2026-27. Includes the ₹75,000 standard deduction, Section 156(2)(a) rebate, marginal relief, surcharge and 4% cess. Excludes professional tax and employee PF, which are deducted separately.
On a gross salary of ₹15 Lakh, income tax under the new regime for Tax Year 2026-27 and FY 2026-27 is approximately ₹97,500 including 4% cess. Taxable income after the ₹75,000 standard deduction is ₹14.25 L.
The new regime, unless your total deductions exceed roughly ₹5.44 L a year. Below that threshold the new regime pays less tax. The Income Tax Department publishes an official comparison calculator.
After income tax of ₹97,500, roughly ₹14.03 L of your gross salary remains. Note this is gross salary, not CTC — employer PF, the gratuity provision and A target variable component may be paid separately. Any amount actually paid is salary cash and is taxable in that year., and employee PF and professional tax are deducted separately.
Yes. The ₹75,000 standard deduction is available under the new regime for salaried taxpayers and pensioners, and is applied automatically by your employer. You do not claim it.
Related: Income Tax Calculator · Salary Calculator · Old vs New Regime · Section 80C Guide · All salary levels
A note on section numbers. The Income-tax Act, 2025 replaced the Income-tax Act, 1961 with effect from 1 April 2026. Section numbers on this page are those of the 2025 Act. Where you know a provision by its old number, the mapping is: 115BAC → 202, 87A → 156, 16(ia) → 19, 80CCD(2) → 124, 112A → 198, 10(10) → 19(1) Table Sl. Nos. 3-6.
The official pages this page is checked against. If one of them disagrees with us, it wins.
Written and checked by the PaisaSamajh editorial desk · Last reviewed: 24 August 2026 · How we check this →