Doable to pay no tax on Rs 15,50,000 annual revenue beneath new tax regime? Study with calculations

Earnings tax return (ITR) submitting has already began for FY25 (AY26). In the meantime, the Earnings Tax Division has prolonged the deadline to file ITR for FY25 to September 15, 2025, from the unique deadline of July 31, 2025. There are two tax regimes: outdated and new. Taxpayers can select between these regimes as per their wage and investments all year long. On this article, let’s check out an instance to learn the way one can plan their taxes in an optimum strategy to make their tax outgo nil on annual revenue of Rs 15,50,000 beneath the brand new tax regime for FY26 (AY27).

New Tax Regime: Find out how to deliver your tax legal responsibility on Rs 15.5 lakh annual revenue to nil? 

To pay zero tax on Rs 15.5 lakh revenue beneath the brand new regime, it is advisable to cut back your taxable revenue to Rs 12,00,000 (Rs 12.75 lakh with commonplace deduction).

 

Let’s take an instance the place an worker’s gross wage is Rs 15.5 lakh, together with a fundamental pay of Rs 7.75 lakh. Usually, the fundamental pay is about 40-50 per cent of CTC. 

• Fundamental Pay: Rs 7,75,000 
• Accredited reimbursements: Rs 1,00,000
• NPS: Rs 1,08,500
• EPF: Rs 21,600 (minimal opted)

 

 

Residence loans present worthwhile tax advantages beneath each the outdated and new tax regimes, however the nature and extent of those advantages differ, say tax planners. 

Deductions for residence loans beneath the brand new tax regime

The brand new tax regime provides decrease tax charges however eliminates most deductions and exemptions. 

Calculations to pay 0 tax on wage of Rs 15,50,000/annum

NPS

Should you go for NPS, then you may make investments 14 per cent of your fundamental wage beneath the brand new tax regime, as per the federal government guidelines. The restrict is 10 per cent of fundamental wage beneath the outdated tax regime.
Rs 15,50,000 – Rs 1,08,500 (6,00,000*14%) = Rs 14,41,500

EPF

Rs 14,41,500 – Rs 21,600 = Rs 14,19,900  

Accredited reimbursements 

Rs 13,91,000 – Rs 1,00,000= Rs 12,91,000

Residence mortgage set-off

You possibly can declare tax profit when you have rented out the property and are incomes rental revenue from it. In that case, you may subtract as much as Rs 2 lakh of curiosity paid on the mortgage from the hire you earn to cut back your taxable revenue.

Rs 12,91,000 – Rs 2,00,000 = Rs 10,91,000 

In different phrases, one can declare limitless deductions for curiosity on a house mortgage beneath let-out property and no deduction for self-occupied property.

Though residence mortgage advantages play an essential position, they shouldn’t be the one standards when choosing a tax regime, say tax planners.

A number of different components benefit cautious consideration.

 

Therefore, the tax shall be 0 as the ultimate taxable revenue is beneath Rs 12,00,000.