How Much Tax on explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
How much income tax is payable on a ₹15 lakh salary under the old tax regime for FY 2025-26 (AY 2026-27)? Here is the step-by-step calculation.
Tax on ₹15 lakh salary — Old Regime
The old regime has a ₹50,000 standard deduction and higher slab rates, but lets you claim deductions like 80C, 80D, HRA and home-loan interest. The figures below assume no such deductions.
| Gross salary | ₹1,500,000 |
| Less: Standard deduction | ₹50,000 |
| Taxable income | ₹1,450,000 |
| Income tax (before cess) | ₹247,500 |
| Health & education cess (4%) | ₹9,900 |
| Total tax payable | ₹257,400 |
Should you pick this regime?
For a ₹15 lakh salary, the new regime is cheaper — about ₹97,500 versus ₹257,400 under the old regime (assuming no deductions). The old regime can still win if you claim large deductions (80C, 80D, HRA, home-loan interest).
How the tax is calculated
- Start with your gross salary and subtract the standard deduction (₹75,000 new / ₹50,000 old)
- Apply the slab rates to the taxable income
- Apply the Section 87A rebate (income up to ₹12 lakh is tax-free in the new regime; ₹5 lakh in the old)
- Add surcharge for high incomes (above ₹50 lakh) and a 4% health & education cess
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Talk to a tax expert →Key Facts About How Much Tax on
- Applies in: All states across India, under the relevant central law.
- Mode: Mostly online via the official government portal.
- Typical timeline: Ranges from a few days to a few weeks depending on the case.
- Non-compliance: May attract penalties, interest or late fees.
- Expert help: TaxClue completes the entire process end to end for you.
How much tax on ₹15 lakh salary in the new regime?
About ₹97,500 for FY 2025-26 (₹75,000 standard deduction, 87A rebate and 4% cess applied), assuming no other deductions.
How much tax on ₹15 lakh salary in the old regime?
About ₹257,400 assuming no deductions; claiming 80C/80D/HRA can reduce this significantly.
Over 90% of compliance penalties in India arise from missed due dates — timely handling can save businesses thousands of rupees each year.
How Much Tax on: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.
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Why This Matters
Staying compliant with Indian regulations protects your business from penalties, interest and unnecessary legal trouble. It is always wise to maintain proper records and documentation so that any future scrutiny can be handled smoothly. Rules and thresholds in income tax are revised periodically, so it helps to review your obligations at the start of each financial year. Professional guidance from a qualified CA, CS or advocate ensures that filings are accurate and submitted well before the due date.
Small businesses and startups especially benefit from setting up a simple compliance calendar to track recurring deadlines. Government portals now allow most applications and filings to be completed online, reducing paperwork and turnaround time. Keeping your PAN, registration certificates and board resolutions organised makes every subsequent filing faster. When in doubt, it is better to seek clarification early rather than risk a notice or a late-filing penalty later.
A clear understanding of the applicable law helps you make confident, well-informed business decisions. TaxClue's experts regularly assist businesses across India with end-to-end income tax support at transparent, affordable pricing. Timely compliance also improves your credibility with banks, investors and government authorities. Reviewing your obligations with a professional at least once a year keeps your business audit-ready and stress-free.
Staying compliant with Indian regulations protects your business from penalties, interest and unnecessary legal trouble. It is always wise to maintain proper records and documentation so that any future scrutiny can be handled smoothly. Rules and thresholds in income tax are revised periodically, so it helps to review your obligations at the start of each financial year. Professional guidance from a qualified CA, CS or advocate ensures that filings are accurate and submitted well before the due date.
Small businesses and startups especially benefit from setting up a simple compliance calendar to track recurring deadlines.