With the new tax slabs announced, salaried individuals with Rs 15 lakh per annum income can save up to Rs 32,500
The 2025 Union Budget has brought cheer for the middle class, as the tax slabs for salaried individuals have been revised. Let us compare the old tax slab vs. the new tax slab to understand how much tax will be applicable on a salary of Rs 15 lakh per annum.
Annual Salary Rs 15 lakh - Old Tax slab
| Income-Tax Slabs | Previous Tax Rate | Tax Payable |
| Up to Rs 3 Lakh | Nil | Nil |
| Rs 3 Lakh to Rs 7 Lakh | 5% | Rs 20,000 |
| Rs 7 Lakh to Rs 10 Lakh | 10% | Rs 30,000 |
| Rs 10 Lakh to Rs 12 Lakh | 15% | Rs 30,000 |
| Rs 12 Lakh to Rs 15 Lakh | 20% | Rs 45,000 |
| Above Rs 15 Lakh | 30% | NA |
Tax Payable Details
| Description | Amount |
| Tax Payable (Including Cess) | Rs 1,25,000 |
| Cess at 4% | Rs 5,000 |
| Total Tax Liability | Rs 1,30,000 |
Annual Salary Rs 15 lakh - New Tax slab
| Income-Tax Slabs | New Tax Rate | Tax Payable |
| Up to Rs 4 Lakh | Nil | Nil |
| Rs 4 Lakh to Rs 8 Lakh | 5% | Rs 20,000 |
| Rs 8 Lakh to Rs 12 Lakh | 10% | Rs 40,000 |
Rs 12 Lakh to Rs 16 Lakh (Rs 12.75 Lakh to Rs 15 Lakh = Rs 2.25 Lakh) | 15% | Rs 33,750 |
| Rs 16 Lakh to Rs 20 Lakh | 20% | NA |
| Rs 20 Lakh to Rs 24 Lakh | 25% | NA |
| Above Rs 24 Lakh | 30% | NA |
Tax Payable Details
| Description | Amount |
| Tax Payable | Rs 93,750 |
| Cess at 4% | Rs 3,750 |
| Total Tax Liability | Rs 97,500 |
As is evident from above, the total tax liability on Rs 15 LPA as per old tax slab is Rs 1,30,000. But in the New Tax slab, the tax liability for Rs 15 LPA is Rs 97,500. That means savings of Rs 32,500 per year.
Important things to note about New Tax regime 2025
Zero tax till income of Rs 12.75 lakh / Full tax rebate under Section 87A - Under the new tax regime, the tax rebate available under Section 87A has been increased from Rs 25,000 to Rs 60,000. This effectively makes the total tax NIL on income of up to Rs 12.75 lakh.
Capital gains to be taxed separately - The Zero tax scheme will apply only to income earned exclusively via salary. If there are capital gains, that component will be taxed separately.
Option to choose between old and new tax regime - With significant benefits available in the tax slabs, it is expected that most taxpayers will shift to the new tax regime. In the last financial year 2023-24, around 72% taxpayers had opted for the new tax regime. With the revised tax slabs, more than 90% taxpayers are expected to shift to the new tax regime.
Nex tax regime applicable on FY 2025-26 - The new tax regime will come into force from the new financial year 2025-26. It is subject to approval from the parliament.
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February 03, 2025
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