Archive · 31 Jul 2026
₹15 Lakh Income Yields Tax Bills From ₹97,500 to Zero
Imagine four friends all earn the same amount of money, ₹15 lakh, but they get taxed differently.
The office worker pays the most tax because he only gets a small deduction.
The retiree gets a big deduction on his rent and interest, so he pays a little tax.
The freelance worker is taxed on only half of what he earns, and the small business owner is taxed on just 6% of his sales.
Because of these rules, the freelance worker and the small business owner end up paying no tax at all, while the office worker pays the most.
Four taxpayers earning ₹15 lakh each show tax liabilities ranging from ₹97,500 to nil.
Salaried employee pays the highest tax due to only ₹75,000 standard deduction.
Retiree’s rental and interest income gets 30% deduction, reducing tax to ₹12,480.
Freelancer under Section 44ADA taxed on 50% of receipts, resulting in nil tax after rebate.
Entrepreneur under Section 44AD taxed on 6% of turnover, also paying nil tax.
- Who
- Salaried employee, retiree, freelance consultant, and small entrepreneur
- What
- Different tax liabilities for the same ₹15 lakh income
- When
- FY 2025-26 (AY 2026-27)
- Where
- India
- Why
- Progressive tax rules and varying deductions for each income type
- Income Type
- Salary
- Tax Paid
- ₹97,500
- Income Type
- Pension & Rental
- Tax Paid
- ₹12,480
- Income Type
- Freelance (Section 44ADA)
- Tax Paid
- ₹0
- Income Type
- Entrepreneur (Section 44AD)
- Tax Paid
- ₹0
- Tax Regime
- New Tax Regime FY 2025-26 (AY 2026-27)