New Tax Rules: Many people dream of earning a big salary, but keeping it tax-free sounds like a far-off goal. But if your income is ₹15 lakh per year and you follow the new tax regime rules for the financial year 2025–26, then it’s actually possible to pay zero tax, but only if you plan it right. The new system gives some smart tax breaks, and if you know how to use them properly, your full income can stay untouched by tax.
The new tax regime now allows no tax on income up to ₹12.75 lakh. So if you can bring down your taxable income from ₹15 lakh to ₹12 lakh by using the right options, then you can also claim a full rebate and pay zero tax. The good news is, it’s very much doable.
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| Income Tax Slabs | Income Tax Rates |
| Up to Rs. 4 lakh | NIL |
| Rs. 4 lakh – Rs.8 lakh | 5% |
| Rs. 8 lakh – Rs.12 lakh | 10% |
| Rs.12 lakh – Rs.16 lakh | 15% |
| Rs.16 lakh – Rs. 20 lakh | 20% |
| Rs. 20 lakh – Rs. 24 lakh | 25% |
| Above Rs. 24 lakh | 30% |
National Pension System (NPS)
If a person earns ₹15 lakh salary usually, the tax would apply based on slab rates. But if the basic salary and dearness allowance total around ₹7.5 lakh, they can bring down their tax amount a lot by using what the new regime allows.
First, a salaried person can get a ₹75,000 standard deduction. That reduces the income from ₹15 lakh to ₹14.25 lakh. Then, there’s a tax benefit under Section 80CCD(2) for the employer’s contribution to the employee’s National Pension System account. If the basic pay is ₹7.5 lakh, 14% of that (which is ₹1.05 lakh) can be claimed as a deduction. That brings the income down to ₹13.2 lakh.
Employees’ Provident Fund (EPF)
If the employer adds up to 12% of the basic salary into the Employee Provident Fund, that amount can also be excluded from taxable income. In this case, that’s ₹90,000, which reduces the taxable salary to ₹12.3 lakh.
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Now employers can include things like food and entertainment bills in the salary structure. If someone includes around ₹30,000 worth of such bills, then the total taxable income drops to ₹12 lakh. That’s the magic number.
Rebate makes Final Tax 0
According to the tax rules for FY 2025–26, a ₹12 lakh income would normally attract around ₹60,000 in tax. But the government gives a rebate under Section 87A of the Income Tax Act. And this rebate can go up to ₹60,000, which cancels out the full tax amount.
So even tho the income is ₹15 lakh, the actual taxable income drops to ₹12 lakh. Because of the rebate, the total tax becomes zero. This means someone who plans their salary and benefits well under the new tax regime can legally pay no tax on ₹15 lakh salary.
