How Much Tax Do You Pay on a ₹15 Lakh Salary?
On a ₹15,00,000 CTC, after removing standard employer EPF components and taking the mandatory ₹75,000 Standard Deduction, your taxable income stands at approximately ₹13,65,000. Under Section 115BAC, this attracts a base tax of 15% on income above ₹12 Lakhs. Your effective annual tax liability is significantly lower than the Old Tax Regime unless you claim substantial deductions.
The 15 LPA Breakeven Rule: New vs Old Regime
To make the Old Tax Regime more profitable than the New Tax Regime on a ₹15 Lakh package, an employee typically needs total exemptions and deductions (Section 80C + 80D + HRA rent exemption + NPS) exceeding ₹3,75,000. If your total claims are below this threshold, the New Regime delivers higher take-home pay with zero investment lock-in.
Frequently Asked Questions
What is the exact monthly take-home for 15 LPA under the New Tax Regime?
With standard 40% basic pay and 12% employee EPF, your net monthly take-home salary is approximately ₹1,05,500 per month.
Can I claim HRA or 80C under the New Tax Regime for 15 LPA?
No. The New Tax Regime does not allow deductions for Section 80C (PPF, ELSS, LIC) or HRA. However, it gives a higher standard deduction of ₹75,000 and substantially lower tax slab rates.
Is EPF deducted from both employer and employee sides?
Yes. Typically, your company's CTC package includes the employer PF contribution (12% of basic). A matching 12% employee share is deducted from your monthly gross pay to arrive at net in-hand.