Income tax return (ITR) filing has already started for FY 2024-25. Meanwhile, Income Tax (I-T) Department has extended the deadline to file ITR for FY 2024-25 to September 15, 2025. The last date was July 31, 2025 earlier. There are two tax regimes- old and new regime that taxpayers can choose as per their salary and investments throughout the year. In this article, we will see expert’s calculations on how to pay 0 tax on Rs 15,50,000 annual income under the new tax regime for FY 2025-26.
New Tax Regime: Achieving 0 tax
To pay zero tax on Rs 15.5 lakh income under the new regime, you need to reduce your taxable income to Rs 12,00,000. For salaried employee, new tax regime allows to get an extra benefits of Rs 75,000 (standard deduction).
Home loans provide valuable tax benefits under both the old and new tax regimes, but the nature and extent of these benefits differ, say tax planners.
Deductions for home loans under the new tax regime
The new tax regime offers lower tax rates but eliminates most deductions and exemptions. You can claim unlimited deductions for interest on a home loan under let-out property and no deduction for self-occupied property, according to tax planners.
Understand through chart
Additional factors to weigh
Although home loan benefits play an important role, they should not be the only criteria when selecting a tax regime. Several other factors merit careful consideration.
Calculations to pay 0 tax on salary of Rs 15,50,000/annum
Salary breakup
CTC: Rs 15,50,000
Basic Pay: Rs 6,00,000
Personal Allowance: Rs 3,44,540
PF: Rs 21,600 (minimum opted)
Gratuity: Rs 28,860
Variable Pay: Rs 1,55,000 (10% of basic salary)
Flexi pay tax-free components: Rs 4,00,0000
Total CTC: Rs 15,50,000
Salary after standard deduction
Rs 15,50,000- Rs 75,000= Rs 14,75,000
NPS
If you opt for NPS, then you can invest 14 per cent of your basic salary under the new tax regime, as per the government rules. The limit is 10 per cent of basic salary under the old tax regime.
Rs 15,50,000 – Rs 84,000 (6,00,000*14%) = Rs 13,91,000
Flexi Pay tax-free component
Rs 13,91,000 – Rs 4,00,000= Rs 9,91,000
Home loan interest + rental income set-off
The limit for this is Rs 2,60,000 if the house is let out.
Interest deduction: Rs 2,00,000
Rental income adjustment: Rs 60,000
Rs 9,91,000 – Rs 2,60,000 = Rs 7,31,000
Other deductions
Gift, family pension, and others: Rs 50,000
Rs 7,31,000– Rs 50,000 = Rs 6,81,000 (final taxable income)
Hence, the tax will be 0 as the final taxable income is below Rs 12,00,000.
