Tax / 7 min read
How to Save Tax on a ₹15 Lakh Salary in India
Practical, legal ways to reduce income tax on a ₹15 lakh salary, the deductions that matter most, and how to pick the regime that costs you less.
By Analyze Daily Team · Published 18 June 2026 · Updated 15 July 2026
Key takeaways
- Your first and biggest decision is the tax regime — it can change your bill by tens of thousands.
- The new regime is simpler with lower rates; the old regime wins if you maximise deductions.
- Top old-regime levers: 80C, 80D, NPS under 80CCD(1B), HRA and home-loan interest.
- Always compare both regimes with your real numbers before declaring.
Step one: choose the right regime
On a ₹15 lakh salary, the single biggest factor in your tax bill is which regime you pick. The new regime applies lower slab rates but removes almost all deductions. The old regime keeps higher rates but lets you shrink taxable income through several exemptions.
Neither is universally better. The answer depends entirely on how many deductions you will genuinely claim.
If you barely use deductions, the new regime usually wins on a ₹15L salary. If you can stack HRA, 80C, 80D and home-loan interest, the old regime often pulls ahead.
Old-regime deductions that cut tax the most
If you go with the old regime, these are the levers that move the needle on a ₹15 lakh salary. Used together, they can reduce your taxable income substantially.
- Section 80C — up to ₹1.5 lakh via EPF, PPF, ELSS, life insurance, home-loan principal and more.
- Section 80CCD(1B) — an extra ₹50,000 for NPS, over and above 80C.
- Section 80D — health-insurance premiums for yourself and your parents.
- HRA exemption — if you pay rent and receive HRA (old regime only).
- Section 24(b) — home-loan interest up to ₹2 lakh for a self-occupied house.
- Section 80E — full interest deduction on an education loan.
What the new regime still gives you
The new regime is not deduction-free. Salaried taxpayers still get a standard deduction, and the lower slab rates plus the section 87A rebate do a lot of the work automatically.
One deduction survives that is worth using: your employer's contribution to NPS under section 80CCD(2). If your employer offers it, it reduces taxable income even in the new regime.
- A flat standard deduction for salaried individuals.
- Lower slab rates than the old regime.
- Employer NPS contribution under 80CCD(2) remains deductible.
A practical approach
Add up the deductions you will realistically claim this year and compare your tax under both regimes with those exact numbers. Do this early in the financial year so you can plan investments, not scramble in March.
Once you know your cheaper regime, set your employer investment declaration accordingly so the right TDS is deducted each month.
Don't choose the old regime for deductions you never actually make — an unclaimed 80C limit gives you higher rates with none of the benefit.
Sources and review
How this guide was prepared
Material rules and regulated assumptions are checked against primary or first-party references. The page was last reviewed on 15 July 2026. If a rule or figure has changed, please report it through our corrections process.
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