How to Save Tax on ₹15 Lakh Salary — Complete Guide

Let us first understand the baseline tax burden on a ₹15 LPA salary with no deductions claimed:

• Old Regime (no deductions): Approximately ₹2,73,000 in tax + 4% cess = ₹2,83,920
• New Regime (with ₹75K standard deduction): Approximately ₹1,30,000 in tax + cess = ₹1,35,200

Without claiming any deductions, the new regime saves you over ₹1.48 lakh. But with smart tax planning, the old regime can bring your tax even lower.

Section 80C is the most popular tax saving section with a ₹1.5 lakh limit:

• EPF contribution: Your employee PF contribution automatically qualifies. At ₹15 LPA with 40% basic, EPF is about ₹72,000/year.
• PPF: Invest up to ₹1.5 lakh/year. Currently gives 7.1% tax-free returns.
• ELSS mutual funds: Only 3-year lock-in (shortest among 80C instruments). Potential for 12–15% returns.
• Life insurance premium: Term plan premiums qualify. A ₹1 crore term plan costs ₹10,000–₹15,000/year.
• Children's tuition fees: Actual fees paid for up to 2 children qualify.
• Home loan principal: The principal portion of EMI qualifies under 80C.

Beyond 80C, several other deductions reduce your taxable income:

• Section 80D — Health Insurance: ₹25,000 for self/family + ₹25,000 for parents (₹50,000 if senior citizens). Total: up to ₹75,000.
• Section 80CCD(1B) — NPS: Additional ₹50,000 deduction over and above 80C.
• HRA Exemption: Based on the lowest of: actual HRA received, rent paid minus 10% of salary, or 50%/40% of salary.
• Section 24(b) — Home Loan Interest: Up to ₹2 lakh deduction for self-occupied property.
• Standard Deduction: ₹50,000 available under the old regime.