How to Legally Pay ZERO Income Tax on ₹15 Lakh Salary in FY 2025–26
📊 Understanding the New Income Tax Regime Slabs (FY 2025–26)
For FY 2025–26, the new income tax regime offers revised slabs to ease the burden on middle and upper-middle-income earners.
Income up to ₹4 lakh is completely tax-free
Higher slabs are taxed progressively, up to 30% for income above ₹24 lakh
👉 The secret to zero income tax on a ₹15 lakh salary lies in smart deductions and employer-linked exemptions.
💼 Claiming the Standard Deduction
Salaried professionals can claim a standard deduction of ₹75,000 under the new tax regime.
₹15,00,000 – ₹75,000 = ₹14.25 lakh taxable income
This flat benefit reduces taxable income without extra paperwork.
🏦 Leveraging Employer Contributions to NPS
Employer contributions to the National Pension System (NPS)—up to 14% of basic salary—are fully deductible.
If basic pay = ₹7.5 lakh (50% of total salary) → contribution = ₹1.05 lakh
New taxable income = ₹13.20 lakh
💰 Tax Savings with EPF Contributions
Employer contributions to the Employees’ Provident Fund (EPF) (12% of basic salary) are deductible too.
On ₹7.5 lakh basic → ₹90,000 deduction
New taxable income = ₹12.30 lakh
📈 Additional Benefits from Small Savings Schemes
Investments in PPF (Public Provident Fund) or Sukanya Samriddhi Yojana provide both long-term growth and tax savings.
Example: ₹1.5 lakh in PPF + ₹1 lakh in Sukanya Samriddhi → save around ₹17,500 in taxes
New taxable income = ₹12.12 lakh
🚗 Using Allowances for Official Expenses
Certain work-related allowances can be structured into salary and claimed tax-free, with bills as proof. Examples:
Entertainment allowance → ₹40,000
Transport allowance → ₹60,000
Fuel reimbursement → ₹25,000
Mobile bills → ₹10,000
Uniform expenses → ₹15,000
👉 Total = ₹1.5 lakh exemptions
👉 New taxable income = ₹10.62 lakh
🏅 Achieving Zero Income Tax Liability
By strategically applying all available deductions and exemptions:
Taxable income = ₹10.62 lakh
This falls below the ₹12 lakh zero-tax threshold in the new income tax regime
✅ Final tax liability = ZERO
⏳ Why Income Tax Planning Ahead Matters
Experts advise against last-minute planning. Starting early allows you to:
Maximise deductions
Optimise employer contributions
Fully utilise benefits under the Income Tax Act
👉 With timely tax planning, even a ₹15 lakh salary can legally attract zero tax.
