In-hand Salary from 20 LPA (FY 2026-27)
A CTC of ₹20 lakh a year works out to about ₹1,36,097 a month in hand under the new tax regime, after PF, professional tax and income tax.
Monthly in-hand salary
₹1,36,097
New regime · ₹16,33,168 a year
- Old regime
- ₹1,21,071 a month
- Income tax (new)
- ₹1,72,432 a year
- Gross pay
- ₹1,58,667 a month
- Your PF
- ₹8,000 a month
Assumes basic pay of 40% of CTC, PF of 12% of basic from you and your employer inside the CTC, ₹2,400 a year of professional tax, no other income and no deductions beyond PF. For a salaried person under 60.
Breakdown for a year
| Per year | New regime | Old regime |
|---|---|---|
| CTC | ₹20,00,000 | ₹20,00,000 |
| Employer PF | −₹96,000 | −₹96,000 |
| Gross salary | ₹19,04,000 | ₹19,04,000 |
| Your PF | −₹96,000 | −₹96,000 |
| Professional tax | −₹2,400 | −₹2,400 |
| Taxable income | ₹18,29,000 | ₹17,55,600 |
| Income tax with cess | −₹1,72,432 | −₹3,52,747 |
| In hand a year | ₹16,33,168 | ₹14,52,853 |
| In hand a month | ₹1,36,097 | ₹1,21,071 |
A month's payslip at 20 LPA
New tax regime, with TDS spread evenly throughout the year.
| Gross pay | ₹1,58,667 |
|---|---|
| Your PF | −₹8,000 |
| Professional tax | −₹200 |
| Income tax (TDS) | −₹14,369 |
| Credited to your bank | ₹1,36,097 |
Professional tax is generally ₹200 monthly (₹300 for one month in some states), or not charged at all in others.
How salary structure impacts your pay
The same ₹20 lakh CTC can be divided differently. Refer to your offer letter to see your breakdown.
| Structure | Regime | In hand a month |
|---|---|---|
| Basic pay 40% of CTC, PF on full basic (the figures above) | New | ₹1,36,097 |
| Basic pay 50% of CTC | New | ₹1,32,513 |
| PF capped at ₹1,800 a month (₹15,000 wage ceiling) | New | ₹1,47,208 |
| Employer PF paid on top of the CTC | New | ₹1,42,433 |
| Gratuity (4.81% of basic) included in the CTC | New | ₹1,33,558 |
| No PF deducted | New | ₹1,50,433 |
| ₹1.5 lakh of 80C (PF included) and ₹25,000 of health insurance (80D) | Old | ₹1,23,125 |
Old or new tax regime?
You'll receive more with the new regime unless your deductions beyond PF and the standard deduction (80C investments, health insurance, HRA, home-loan interest) total over about ₹5,78,000 yearly. If they do, the old regime may leave you with more.