In-hand salary for ₹20 lakh CTC

What a ₹20 lakh CTC means each month after PF, professional tax and income tax for FY 2026-27, under both tax regimes.

Last reviewed

In-hand, new regime₹1,44,025per month
In-hand, old regime₹1,26,839per month, no extra deductions
Income tax, new regime₹1,77,902per year
PF savings₹3,600per month, yours + employer's

Your CTC

As written in your offer letter.

₹
₹1 L₹1 Cr
% of CTC
20%70%
Variable pay / bonusYearly amount included in the CTC₹
Tax regime
Employer PF12% of basic
Gratuity in CTC4.81% of basic
Professional taxYearly; ₹0 in states without it₹

Your take-home pay

New tax regime, FY 2026-27.

In-hand salary₹1,44,025per month
Income tax₹14,825TDS per month
PF savings₹3,600Yours + employer's
Where your CTC goes
  • In-hand salary86%₹1,44,025
  • Income tax9%₹14,825
  • Your PF contribution1%₹1,800
  • Employer PF contribution1%₹1,800
  • Gratuity (paid when you leave, after 5 years)2%₹4,008
  • Professional tax0%₹208
  • The new regime gives you ₹17,186 more a month than the old regime.
  • A ₹1 lakh raise in CTC adds about ₹6,441 a month to your in-hand pay.

Salary structure

Typical split of your CTC; your employer's may differ. Yearly in-hand includes any bonus after tax.

ComponentMonthlyYearly
Basic salary₹83,333₹10,00,000
House rent allowance (HRA)₹41,667₹5,00,000
Special allowance₹35,858₹4,30,300
Gross salary₹1,60,858₹19,30,300
Employer PF₹1,800₹21,600
Gratuity₹4,008₹48,100
Cost to company (CTC)₹1,66,667₹20,00,000
Less: your PF− ₹1,800− ₹21,600
Less: professional tax− ₹208− ₹2,500
Less: income tax (TDS)− ₹14,825− ₹1,77,902
In-hand salaryNew regime₹1,44,025₹17,28,298

The details

₹20 lakh CTC salary breakup

A typical structure for a ₹20 lakh CTC (₹20,00,000 a year) in the new regime. The new regime gives the higher take-home pay with no extra deductions.

ComponentMonthlyYearly
Basic salary₹83,333₹10,00,000
House rent allowance₹41,667₹5,00,000
Special allowance₹35,858₹4,30,300
Gross salary₹1,60,858₹19,30,300
Employer PF₹1,800₹21,600
Gratuity₹4,008₹48,100
Your PF− ₹1,800− ₹21,600
Professional tax− ₹208− ₹2,500
Income tax (new regime)− ₹14,825− ₹1,77,902

In-hand salary: ₹1,44,025 a month (₹17,28,298 a year).

How basic pay changes your in-hand salary

A higher basic raises gratuity and, if PF is on full basic, PF. With PF on the ₹15,000 ceiling:

Basic salaryMonthly in-handMonthly PF (total)
40% of CTC₹1,44,660₹3,600
50% of CTC₹1,44,025₹3,600
60% of CTC₹1,43,390₹3,600

Compared with nearby CTCs

CTCMonthly in-handMonthly tax
₹17 lakh₹1,24,539₹9,913
₹18 lakh₹1,31,142₹11,442
₹19 lakh₹1,37,584₹13,134
₹20 lakh₹1,44,025₹14,825
₹22 lakh₹1,56,689₹18,427
₹24 lakh₹1,68,725₹22,656
₹25 lakh₹1,74,744₹24,771

Change any assumption in the calculator above, or check the income tax on a ₹20 lakh salary.

Frequently asked questions

What is the in-hand salary for a ₹20 lakh CTC?

About ₹1,44,025 a month in the new tax regime for FY 2026-27, assuming basic pay at 50% of CTC, PF on the ₹15,000 wage ceiling, gratuity included in the CTC and ₹2,500 professional tax. In the old regime with no deductions beyond PF it is about ₹1,26,839.

How much income tax is deducted on a ₹20 lakh CTC?

About ₹1,77,902 a year (₹14,825 a month as TDS) in the new regime, and about ₹3,84,134 in the old regime with no deductions beyond PF.

How much PF is deducted on a ₹20 lakh CTC?

With PF on the ₹15,000 wage ceiling, you and your employer each contribute ₹1,800 a month. If your employer calculates PF on your full basic, each side becomes ₹10,000 a month and your in-hand pay falls by the difference.

How can I take home more on a ₹20 lakh CTC?

Ask whether PF can be on the wage ceiling, add employer NPS contributions (tax-free in both regimes up to a limit), and, if you pay rent and invest under 80C, compare the old regime, which allows HRA exemption.

Related

Results are estimates for illustration, not tax or financial advice.