For ₹15 lakh taxable income under the new tax regime in FY 2025-26, the income tax before cess is ₹1,05,000, and the total after 4% Health and Education Cess is ₹1,09,200. This assumes ₹15 lakh is already taxable income, not gross salary.
For a salaried taxpayer earning ₹15 lakh gross salary, the ₹75,000 standard deduction reduces taxable income to ₹14.25 lakh, resulting in tax of ₹97,500 including cess.
This article compares these figures with ₹12 lakh, ₹13 lakh, ₹14 lakh, ₹16 lakh and ₹20 lakh income under the FY 2025-26 new regime and explains how Section 87A and marginal relief affect the calculation.
Tax on 15 Lakh Income in New Regime
The FY 2025-26 new regime uses progressive slabs: nil up to ₹4 lakh, 5% from ₹4–8 lakh, 10% from ₹8–12 lakh, 15% from ₹12–16 lakh, 20% from ₹16–20 lakh, 25% from ₹20–24 lakh, and 30% above ₹24 lakh.
For ₹15 lakh taxable income, the calculation is:
| Income Slab | Tax Rate | Tax |
|---|---|---|
| Up to ₹4,00,000 | Nil | ₹0 |
| ₹4,00,000 to ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,000 to ₹12,00,000 | 10% | ₹40,000 |
| ₹12,00,000 to ₹15,00,000 | 15% | ₹45,000 |
| Total income tax | ₹1,05,000 | |
| Health and Education Cess | 4% | ₹4,200 |
| Final tax payable | ₹1,09,200 |
Section 87A does not reduce this liability because taxable income exceeds the ₹12 lakh eligibility threshold. The 15% rate applies only to the ₹12–15 lakh portion, not the entire ₹15 lakh.
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12 Lakh Tax Slab New Regime
The ₹12 lakh threshold matters because eligible resident individuals can claim a Section 87A rebate of up to ₹60,000 when taxable income does not exceed ₹12 lakh.
At exactly ₹12 lakh taxable income, the slab tax is ₹20,000 (5% band) plus ₹40,000 (10% band) = ₹60,000. The rebate can offset this, resulting in nil income tax before any separately taxed special-rate income.
What happens to a ₹12.75 lakh salary?
For an eligible salaried taxpayer, the ₹75,000 standard deduction means ₹12.75 lakh gross salary can produce ₹12 lakh taxable income, assuming no other taxable income.
This does not make ₹12.75 lakh a universal zero-tax figure for every income type.
Tax on 20 Lakh Income New Regime
For ₹20 lakh taxable income, the 20% slab applies after ₹16 lakh:
| Income Slab | Tax Rate | Tax |
|---|---|---|
| Up to ₹4,00,000 | Nil | ₹0 |
| ₹4,00,000 to ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,000 to ₹12,00,000 | 10% | ₹40,000 |
| ₹12,00,000 to ₹16,00,000 | 15% | ₹60,000 |
| ₹16,00,000 to ₹20,00,000 | 20% | ₹80,000 |
| Total income tax | ₹2,00,000 | |
| Health and Education Cess | 4% | ₹8,000 |
| Final tax payable | ₹2,08,000 |
The effective rate is about 10.4% of ₹20 lakh because the 20% rate applies only to the ₹16–20 lakh band.
Tax on 13 Lakh, 14 Lakh and 16 Lakh Income
| Taxable Income | Tax Before Cess | 4% Cess | Final Tax |
|---|---|---|---|
| ₹12 lakh | ₹60,000* | ₹2,400* | Nil* |
| ₹13 lakh | ₹75,000 | ₹3,000 | ₹78,000 |
| ₹14 lakh | ₹90,000 | ₹3,600 | ₹93,600 |
| ₹15 lakh | ₹1,05,000 | ₹4,200 | ₹1,09,200 |
| ₹16 lakh | ₹1,20,000 | ₹4,800 | ₹1,24,800 |
| ₹20 lakh | ₹2,00,000 | ₹8,000 | ₹2,08,000 |
*At ₹12 lakh taxable income, the eligible Section 87A rebate can offset the ₹60,000 slab tax, resulting in nil tax.
For ₹13 lakh taxable income, the first ₹12 lakh generates ₹60,000, and the extra ₹1 lakh at 15% adds ₹15,000, giving ₹78,000 after cess.
For ₹14 lakh, another ₹1 lakh at 15% gives ₹93,600 after cess. At ₹16 lakh, the full ₹12–16 lakh band is taxed at 15%, producing ₹1,24,800 after cess.
How Section 87A Rebate and Marginal Relief Affect the Calculation
Section 87A is a rebate for eligible resident individuals. Under the FY 2025-26 new regime, it can be up to ₹60,000 when taxable income does not exceed ₹12 lakh.
It is not a partial benefit for everyone earning slightly more.
Marginal relief addresses the sharp increase just above ₹12 lakh. It is meant for taxpayers only slightly above the threshold, not for incomes well beyond it such as ₹15 lakh.
Calculations near the ₹12–13 lakh range should account for both provisions.
₹15 Lakh Salary vs ₹15 Lakh Taxable Income
A ₹15 lakh salary and ₹15 lakh taxable income are different starting points.
For an eligible salaried taxpayer:
₹15,00,000 gross salary − ₹75,000 standard deduction = ₹14,25,000 taxable income
Tax on ₹14.25 lakh: ₹0 + ₹20,000 + ₹40,000 + (₹2.25 lakh × 15%) = ₹93,750 before cess, and ₹97,500 after 4% cess.
If other taxable income brings total taxable income back to ₹15 lakh, the liability returns to ₹1,09,200. The starting point determines the calculation.
Common Mistakes When Calculating Tax on ₹15 Lakh
Treating CTC as taxable income. CTC includes employer PF, gratuity and other components that are not immediately taxable.
Applying 15% to the entire ₹15 lakh. The 15% rate applies only to income between ₹12 lakh and ₹16 lakh.
Forgetting the standard deduction. Eligible salaried taxpayers can reduce gross salary by ₹75,000 before applying slab rates.
Ignoring the ₹12 lakh rebate threshold. Section 87A and marginal relief must be checked for income near ₹12 lakh.
Forgetting cess. Health and Education Cess is 4% of income tax plus applicable surcharge.
Confusing FY and AY. FY 2025-26 income is reported for AY 2026-27.
Practical Takeaway
If ₹15 lakh is taxable income, the tax is ₹1,05,000 before cess and ₹1,09,200 after cess.
If ₹15 lakh is gross salary, an eligible salaried taxpayer applies the ₹75,000 standard deduction, giving ₹14.25 lakh taxable income and about ₹97,500 tax including cess.
For comparison, ₹12 lakh taxable income can qualify for the Section 87A rebate, while ₹20 lakh taxable income results in ₹2,08,000 including cess.
Key Takeaways
- Tax on ₹15 lakh taxable income under the FY 2025-26 new regime is ₹1,09,200, including 4% cess.
- A ₹15 lakh gross salary can result in ₹14.25 lakh taxable income after the standard deduction and about ₹97,500 tax.
- Eligible resident individuals with taxable income up to ₹12 lakh can claim the Section 87A rebate of up to ₹60,000.
- Tax on ₹20 lakh taxable income is ₹2,08,000, including 4% cess.
- Slab rates apply only to their respective bands, not to the entire income.
- Income near the ₹12 lakh threshold requires attention to both Section 87A and marginal relief.
Frequently Asked Questions
How much tax is payable on ₹15 lakh income under the new tax regime?
If ₹15 lakh is taxable income, tax is ₹1,09,200 including cess.
If ₹15 lakh is gross salary for an eligible salaried taxpayer, the standard deduction reduces taxable income to ₹14.25 lakh, giving about ₹97,500 tax including cess.
Is ₹12 lakh income tax-free under the new tax regime?
For an eligible resident individual with ₹12 lakh taxable income, the slab tax is ₹60,000 and the Section 87A rebate can offset it, resulting in nil income tax.
A salaried taxpayer can have ₹12.75 lakh gross salary and arrive at ₹12 lakh taxable income after the ₹75,000 standard deduction, assuming no other taxable income.
What is the tax on ₹20 lakh income under the new regime?
On ₹20 lakh taxable income, slab tax is ₹2,00,000. After 4% cess of ₹8,000, the total is ₹2,08,000, assuming normal slab-rate income.
What is the tax on ₹14 lakh income under the new regime?
On ₹14 lakh taxable income, tax before cess is ₹90,000. Adding 4% cess of ₹3,600 gives ₹93,600, assuming normal slab-rate income and no other adjustments.
Does a ₹15 lakh salary qualify for the Section 87A rebate?
A ₹15 lakh gross salary is reduced by the ₹75,000 standard deduction to ₹14.25 lakh taxable salary, assuming no other income.
Since this exceeds the ₹12 lakh rebate threshold, the taxpayer would generally not qualify for Section 87A.
This article is for general informational purposes only and does not constitute professional tax, financial, or legal advice.
Tax liability can vary based on the taxpayer’s income type, eligibility, and applicable rules.
