income-tax

Tax Planning for ₹10 Lakh / ₹15 Lakh / ₹20 Lakh Salary

Complete tax planning guide for salaried individuals earning ₹10 lakh, ₹15 lakh, or ₹20 lakh. Strategic deductions and investments to minimize tax.

Alok K Acharya & Associates
1 March 2025·Updated 18 August 20263 min read
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Tax Planning for ₹10 Lakh / ₹15 Lakh / ₹20 Lakh Salary#

The figures below are computed under the New Tax Regime (the default), using only the ₹75,000 standard deduction — no other deductions are needed to get these results, since most Section 123/126-style deductions aren't available under the New Regime in the first place.

Tax on ₹10 Lakh Salary#

Tax Calculation#

ComponentAmount
Gross Salary₹10,00,000
Standard Deduction₹75,000
Taxable Income₹9,25,000
Income SlabTax
₹4-8L: ₹4L @ 5%₹20,000
₹8-9.25L: ₹1.25L @ 10%₹12,500
Total Tax₹32,500
Less: Section 156 Rebate (taxable income within ₹12L ceiling)(₹32,500)
Total Tax Payable₹0

A ₹10 lakh salary already pays zero tax under the New Regime — no additional tax planning is needed.

Tax on ₹15 Lakh Salary#

Tax Calculation#

ComponentAmount
Gross Salary₹15,00,000
Standard Deduction₹75,000
Taxable Income₹14,25,000
Income SlabTax
₹4-8L: ₹4L @ 5%₹20,000
₹8-12L: ₹4L @ 10%₹40,000
₹12-14.25L: ₹2.25L @ 15%₹33,750
Total Tax₹93,750
Section 156 RebateNot applicable — taxable income exceeds ₹12L
Cess (4%)₹3,750
Total₹97,500

Taxable income is above the New Regime's ₹12 lakh rebate ceiling, so the computed tax applies in full. If your old-regime deductions (Section 123, 126, home loan interest, HRA) would exceed roughly ₹2-3 lakh at this income level, compare both regimes before choosing — the Old Regime may work out cheaper depending on your actual deduction total.

Tax on ₹20 Lakh Salary#

Tax Calculation#

ComponentAmount
Gross Salary₹20,00,000
Standard Deduction₹75,000
Taxable Income₹19,25,000
Income SlabTax
₹4-8L: ₹4L @ 5%₹20,000
₹8-12L: ₹4L @ 10%₹40,000
₹12-16L: ₹4L @ 15%₹60,000
₹16-19.25L: ₹3.25L @ 20%₹65,000
Total Tax₹1,85,000
Cess (4%)₹7,400
Total₹1,92,400

No surcharge applies here — surcharge only kicks in above ₹50 lakh taxable income, well beyond this bracket.

Key Deductions Summary (Old Regime Only)#

These are not available under the New Regime — they only help if you opt for the Old Regime after comparing both:

SectionMax Deduction
123 (80C)₹1,50,000
80CCD(1B)₹50,000
126 (80D)₹25,000
80EUnlimited (education loan interest)
24(b)₹2,00,000 (home loan interest, self-occupied)
80EE₹50,000
Standard Deduction (Old Regime)₹50,000
Standard Deduction (New Regime)₹75,000

Conclusion#

At ₹10 lakh, the New Regime already gets you to zero tax with no planning required. Above that, compare both regimes with your actual numbers — don't assume either one wins without calculating.

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