₹15L, ₹20L, ₹25L salary: How much tax would you pay?

Published 9 July 2026 · india

How much income tax will you pay under the old and new tax regimes for FY 2025-26? Standard deduction: Rs 50,000 Section 80C: Rs 1,50,000

How much income tax will you pay under the old and new tax regimes for FY 2025-26? Standard deduction: Rs 50,000 Section 80C: Rs 1,50,000 Section 80CCD(1B) (additional NPS): Rs 50,000 Section 80D: Rs 25,000 HRA exemption: Rs 2,00,000 Particulars Salary Rs 15 lakhs Salary Rs 20 lakhs Salary Rs lakhs Old Tax Regime New Tax Regime Old Tax Regime New Tax Regime Old Tax Regime New Tax Regime Gross Salary 15,00,000 20,00,000 25,00,000 Less: Deductions 4,75,000 75,000 4,75,000 75,000 4,75,000 75,000 Taxable Income 10,25,000 14,25,000 15,25,000 19,25,000 20,25,000 24,25,000 Income Tax (Including HEC @ 4%) 1,24,800 97,500 2,80,800 1,92,400 4,36,800 3,19,800 Which tax regime helps you save more tax? Annual Salary Tax under Old Regime (Rs) Tax under New Regime (Rs) Potential Tax Savings Beneficial Tax Regime Rs 15 lakhs 1,24,800 97,500 27,300 New Regime Rs 20 lakhs 2,80,800 1,92,400 88,400 New Regime Rs 25 lakhs 4,36,800 3,19,800 1,17,000 New Regime Why your tax calculations may differ When can the old tax regime be a better option? Lives in rented accommodation and claims a significant HRA exemption under Section 10(13A). Contributes the entire Rs 1.5 lakh under Section 80C through EPF, PPF, ELSS or life insurance etc. Invests an additional Rs 50,000 in NPS under Section 80CCD(1B). Pays health insurance premiums qualifying under Section 80D. Claims interest deduction of up to Rs 2 lakh on a self-occupied housing loan under Section 24(b).

Has substantial ta free allowances and exemptions available through salary structuring. How much deduction is required for the old tax regime to become more ta efficient? Rs 2 lakh of deductions under Chapter VI-A; and Around Rs 3.5 lakh of additional deductions or exemptions, such as House Rent Allowance (HRA) or deductions under Section 80G for eligible donations. Choosing between the old and new tax regimes has become one of the most important tax decisions for salaried employees. While the new tax regime offers enhanced Section 87A tax rebate and is now the default option, the old tax regime still allows several deductions and exemptions that can significantly reduce taxable income and thus the net tax outgo.So, if you earn Rs 15 lakh, Rs 20 lakh or Rs 25 lakh annually, which system will help you earn more on taxes? The answer really hinges on the deductions and exemptions you are eligible to claim. Here's a comparison.To compare both regimes fairly, the tax calculations are based on a common set of assumptions. According to Akhil Chandna, Partner & Global People Solutions Leader, Grant Thornton Bharat, the following deductions and exemptions have been considered under the old tax regime:Total deductions/exemptions assumed under old regime: Rs 4,75,000Under the new regime, only the standard deduction of Rs 75,000 is considered. Deductions under Sections 80C, 80D, HRA exemption, and Section 80CCD(1B) are generally not available.