How Salaried Professionals Can Save Taxes On ₹15 Lakh Income Under the New Regime in FY 2025-26

For salaried professionals, tax season often brings confusion and urgency. Many employees begin exploring exemptions and deductions only when the filing deadline is near, missing out on structured planning opportunities. According to tax experts, it is possible to legally reduce income tax liability to nil even with an annual salary of ₹15 lakh under the new tax regime for FY 2025-26. The key lies in understanding the updated slabs and making strategic use of deductions, allowances, and employer contributions.

Understanding the New Tax Regime Slabs

The new regime introduced for FY 2025-26 has simplified tax brackets while offering limited deductions compared to the old system. As per official rates, income up to ₹4,00,000 remains tax-free, while earnings beyond ₹24,00,000 attract a 30% rate. Salaried professionals in the middle-income range, particularly around ₹15 lakh, can still take advantage of exemptions and benefits provided under the law to cut down their taxable income significantly.

Role of Standard Deduction

Experts note that the first relief comes from the standard deduction, available automatically to all salaried individuals. For FY 2025-26, this deduction is fixed at ₹75,000. When applied to a gross income of ₹15 lakh, it immediately lowers taxable income to ₹14.25 lakh, setting the foundation for further tax planning.

National Pension System (NPS) Benefits

Employer contributions to the National Pension System are one of the most effective ways to save tax under the new structure. As per the rules, up to 14% of the basic salary qualifies for exemption. If the basic component is half the gross salary (₹7.5 lakh), this results in an NPS deduction of ₹1.05 lakh. Tax experts highlight this as a dual advantage—future retirement security and present-day tax reduction. After this step, the taxable income falls further to ₹13.2 lakh.

Relief Through Employee Provident Fund (EPF)

In addition to NPS, the Employee Provident Fund provides another significant avenue for salaried workers. Employer contributions of up to 12% of basic salary are exempt. For a ₹7.5 lakh basic pay, this amounts to ₹90,000. This deduction reduces the taxable income to ₹12.3 lakh, bringing it closer to the crucial threshold of ₹12 lakh, where no tax is payable under the slabs.

Additional Savings via PPF and Sukanya Samriddhi

Beyond employer-linked benefits, individuals can also utilise investments in Public Provident Fund (PPF) or Sukanya Samriddhi Yojana. For example, by contributing ₹1.5 lakh towards PPF and ₹1 lakh towards Sukanya Samriddhi, taxpayers can claim further advantages. Experts estimate that such combined savings can lower taxable income by an additional ₹17,500, trimming it to approximately ₹12.12 lakh.

Corporate Reimbursements and Allowances

Another underused provision, according to financial planners, is the exemption on reimbursements. Official expenses on items such as transport, mobile usage, uniforms, fuel, and even entertainment, if structured into the salary package, can provide up to ₹1.5 lakh in tax relief. Employees need to coordinate with their HR department to ensure these reimbursements are recognised as part of gross salary. Applying this exemption reduces the taxable income further to ₹10.62 lakh, which comfortably falls within the tax-free bracket.

How This Translates to Zero Tax

Step-by-step, a ₹15 lakh salary—after deductions from standard relief, employer contributions, investments, and reimbursements—can be reduced to ₹10.62 lakh. Since this amount is within the exempt bracket, the final liability becomes nil under the new regime. Experts emphasise that this requires careful financial planning across the year rather than last-minute investments.

Why Timely Planning Matters

While the calculations show how zero tax can be achieved, professionals caution that eligibility depends on proper documentation, actual reimbursements, and the employer’s role in structuring salary. Those who start planning at the beginning of the financial year are more likely to optimise benefits. Delaying until ITR season might limit available options.

For salaried individuals earning ₹15 lakh annually, the new tax regime may initially seem less rewarding due to fewer deductions. However, with a strategic approach combining standard relief, employer contributions, investments, and reimbursements, it is possible to legally reduce the taxable income to nil. According to experts, early planning is the best way to maximise benefits and stay stress-free during tax filing season.

Disclaimer: This article is for informational purposes only and should not be considered as professional financial advice. Readers are encouraged to consult certified tax experts or financial planners for guidance tailored to their personal circumstances.