Old vs New Regime for 15 LPA Salary — FY 2026-27 (Exact Numbers)
Your appraisal just hit 15 LPA. Or you just got an offer letter. And your HR portal is asking you to declare your tax regime for FY 2026-27 — by end of week.
Here's what makes 15 LPA different from any salary below it: this is the first CTC level where your tax regime choice actually costs or saves you real money. Below ₹12.75 LPA, the new regime gives zero tax regardless — there's nothing to decide. At 15 LPA, you're paying tax either way, and the regime you pick determines whether that's ₹88,503 or ₹1,17,726 this year.
The difference is ₹29,223 per year — ₹2,436 every month. This guide gives you the rupee-by-rupee calculation so you know exactly which regime wins for your situation.
15 LPA Salary Structure — What You Actually Receive
We calculated this using the standard salary structure most Indian IT and service companies follow. Before comparing regimes, you need to know your actual gross salary — which is not ₹15,00,000. Your CTC includes employer contributions that never hit your account.
| Component | Annual (₹) | Monthly (₹) |
|---|---|---|
| CTC (Cost to Company) | 15,00,000 | 1,25,000 |
| Basic Salary (50% of CTC) | 7,50,000 | 62,500 |
| HRA (50% of Basic) | 3,75,000 | 31,250 |
| Special Allowance (balance) | 3,17,325 | 26,444 |
| Less: Employer PF (12% of ₹15,000)(Not in your hand) | (21,600) | (1,800) |
| Less: Gratuity (4.81% of Basic)(Paid on exit) | (36,075) | (3,006) |
| Gross Annual Salary(What you earn) | 14,42,325 | 1,20,194 |
Your gross salary is ₹14,42,325 — not ₹15 lakh. This is the number both regimes will calculate tax on. Your salary breakup may differ — check your payslip or offer letter for actual components.
Tax Calculation Under New Regime — 15 LPA (Step by Step)
Under the new regime (Section 115BAC of the Income Tax Act 2025, effective April 1, 2026), deductions are minimal. You get the standard deduction of ₹75,000 and almost nothing else in a standard salaried scenario.
Slab-Wise Tax Calculation (New Regime FY 2026-27)
| Income Slab | Rate | Calculation | Tax (₹) |
|---|---|---|---|
| ₹0 – ₹4,00,000 | Nil | ₹4,00,000 × 0% | — |
| ₹4,00,001 – ₹8,00,000 | 5% | ₹4,00,000 × 5% | ₹20,000 |
| ₹8,00,001 – ₹12,00,000 | 10% | ₹4,00,000 × 10% | ₹40,000 |
| ₹12,00,001 – ₹13,67,325 | 15% | ₹1,67,325 × 15% | ₹25,099 |
| Total Income Tax | ₹85,099 | ||
| 87A Rebate | Taxable income ₹13.67L > ₹12L limit | ₹NIL | |
| Health & Education Cess | 4% | ₹85,099 × 4% | ₹3,404 |
| Total Tax Payable | ₹88,503 |
Tax Calculation Under Old Regime — 15 LPA (Step by Step)
The old regime allows multiple deductions — but they must all be legitimate and documented. We've used realistic numbers for a Bengaluru-based IT professional paying ₹20,000/month rent with standard investments.
Deductions Available (Old Regime)
| Deduction | Section | Amount (₹) | Notes |
|---|---|---|---|
| Standard Deduction | Section 16 | ₹50,000 | Lower than new regime (₹75,000) |
| HRA Exemption | Section 10(13A) | ₹1,65,000 | See HRA calculation below |
| EPF + ELSS/PPF | Section 80C | ₹1,50,000 | ₹21,600 EPF + ₹1,28,400 investments |
| Health Insurance | Section 80D | ₹25,000 | Self + spouse + children |
| NPS (own contribution) | Section 80CCD(1B) | ₹50,000 | Optional — increases savings |
| Total Deductions | ₹4,40,000 |
HRA exemption = minimum of three values:
HRA exemption = ₹1,65,000 (Rule 2 is the minimum, so this is what's exempt).
Slab-Wise Tax Calculation (Old Regime)
| Income Slab | Rate | Calculation | Tax (₹) |
|---|---|---|---|
| ₹0 – ₹2,50,000 | Nil | ₹2,50,000 × 0% | — |
| ₹2,50,001 – ₹5,00,000 | 5% | ₹2,50,000 × 5% | ₹12,500 |
| ₹5,00,001 – ₹10,00,000 | 20% | ₹5,00,000 × 20% | ₹1,00,000 |
| ₹10,00,001 – ₹10,02,325 | 30% | ₹2,325 × 30% | ₹698 |
| Total Income Tax | ₹1,13,198 | ||
| 87A Rebate | Taxable income ₹10.02L > ₹5L limit | NIL | |
| Health & Education Cess | 4% | ₹1,13,198 × 4% | ₹4,528 |
| Total Tax Payable | ₹1,17,726 |
Side-by-Side Comparison — Old vs New Regime at 15 LPA
| Parameter | New Regime | Old Regime |
|---|---|---|
| Gross Annual Salary | ₹14,42,325 | ₹14,42,325 |
| Total Deductions Claimed | ₹75,000 | ₹4,40,000 |
| Taxable Income | ₹13,67,325 | ₹10,02,325 |
| Income Tax (before cess) | ₹85,099 | ₹1,13,198 |
| Health & Education Cess | ₹3,404 | ₹4,528 |
| Total Tax Payable | ₹88,503 | ₹1,17,726 |
| Annual In-Hand Salary | ₹13,29,828 | ₹13,00,596 |
| Monthly In-Hand Salary | ₹1,10,819 | ₹1,08,383 |
| Tax Saved vs Other Regime | ₹29,223 saved | Pays ₹29,223 more |
With deductions of ₹4,40,000 (80C + 80D + HRA + NPS), the new regime saves ₹29,223 per year — ₹2,436 every month. The old regime pays significantly more tax despite claiming all common deductions.
The Break-Even Point — How Much Deduction Makes Old Regime Worth It?
This is the most important calculation. Under the new regime, your tax is ₹88,503. For the old regime to match this, your taxable income needs to drop to a specific level. Here's the math:
If your total deductions (80C + 80D + HRA + NPS + home loan interest + any other) exceed ₹5,79,330 → choose Old Regime.
Below ₹5,79,330 in total deductions → New Regime saves more.
You're currently claiming ₹4,40,000 in standard deductions. To reach ₹5,79,330, you need an additional ₹1,39,330. The only realistic source at 15 LPA is home loan interest under Section 24(b).
Which Regime Should You Choose? (Your Scenario)
"I only have PF and no other investments"
New Regime ✅With only EPF (which is within the ₹75K standard deduction anyway), your deductions are far below ₹5,79,330. New regime saves you ₹29,223/year with zero investment effort.
"I pay ₹20,000 rent in Bengaluru + invest ₹1.5L in 80C + ₹25K in 80D + ₹50K in NPS"
New Regime ✅ (still)Even with ₹4,40,000 in total deductions, new regime wins by ₹29,223/year. You're still ₹1,39,330 short of the break-even. Keep the investments for wealth-building, but choose new regime for tax.
"I have a home loan (₹30,000+ EMI, paying ₹2L interest/year)"
Old Regime ✅With ₹6,40,000 total deductions (standard + home loan), old regime tax drops to ₹75,884 vs new regime ₹88,503. Old regime saves ₹12,619/year. Claim Section 24(b) fully.
"I'm a fresher — first job, no investments, no rent paid separately"
New Regime ✅No investments, no HRA claim, no home loan. Your effective deductions are near zero beyond the standard ₹75,000. New regime is an automatic win — and a simpler filing experience.
"I invest max in 80C (₹1.5L) + NPS (₹50K) + 80D (₹25K) but NO home loan, NO HRA claim"
New Regime ✅Deductions = ₹50K standard + ₹1.5L 80C + ₹25K 80D + ₹50K NPS = ₹2,75,000. Well below ₹5,79,330. New regime still saves ~₹20,000+ per year. Reconsider only if you add a home loan.
Calculate Your Exact 15 LPA In-Hand Salary
Your actual salary breakup may differ from this standard structure. Our free salary calculator is updated for FY 2026-27 with the new Income Tax Act 2025 slabs, ₹75,000 standard deduction under new regime, and ₹12 lakh 87A rebate threshold.
FY 2026-27 Changes That Affect Your 15 LPA Tax
Income Tax Act 2025 replaces the 1961 Act — from April 1, 2026
The legislation that governs your taxes has changed. Section numbers are different (the new regime is now under Section 202 instead of 115BAC, for example), but the actual slab rates, deduction amounts, and exemptions are identical. Nothing changes in your tax amount — only the law's structure and language.
"Tax Year" replaces "Assessment Year / Previous Year"
The new Act simplifies terminology. FY 2026-27 is now called Tax Year 2026-27. When your CA or employer mentions "tax year," they mean the same period you used to call "previous year." This is purely a language change.
New regime stays the default — you must actively opt for old regime
If you don't declare your preference to your employer, they will deduct TDS under the new regime by default. This is fine if new regime wins for you (which it does for most 15 LPA earners). But if you want old regime, you must specifically tell HR — preferably in April before the first salary is processed.
Standard deduction under new regime: ₹75,000 (confirmed for FY 2026-27)
The ₹75,000 standard deduction under new regime — introduced in Union Budget 2024 — continues unchanged in FY 2026-27. Old regime standard deduction stays at ₹50,000. This ₹25,000 gap is one reason the new regime is competitive even for deduction-heavy profiles.
87A rebate: ₹12 lakh threshold — does NOT help you at 15 LPA
The 87A rebate (₹60,000 under new regime) applies when taxable income is ₹12 lakh or below. At 15 LPA, your taxable income under new regime is ₹13,67,325 — above the threshold. No rebate. You pay the full ₹88,503 in tax.
Frequently Asked Questions
Is 15 LPA salary tax-free under new regime?
How much tax do I pay on 15 LPA under new regime 2026-27?
Which is better for 15 LPA — old or new tax regime?
What is the monthly in-hand salary for 15 LPA?
Can I switch tax regime mid-year at 15 LPA?
Does Section 87A rebate apply to 15 LPA salary?
The Verdict for 15 LPA in FY 2026-27
For most 15 LPA earners without a home loan, the new regime wins by ₹29,223/year. You need deductions exceeding ₹5,79,330 — practically achievable only with a significant home loan — for the old regime to pull ahead. If you have a home loan with ₹2 lakh+ annual interest, do the old regime calculation before deciding. For everyone else: new regime, confidently.
Use Free Salary Calculator for Your Exact Numbers →