How ₹20 LPA becomes ₹1,33,549 a month
- Start with an annual CTC of ₹20,00,000.
- Remove employer PF (₹96,000) and gratuity (₹38,480), which are not paid as cash: gross salary is ₹18,65,520.
- Subtract your own PF (₹96,000) and professional tax (₹2,500).
- Subtract income tax: ₹1,64,428 under the new regime.
- What is left, ₹16,02,592 a year, is about ₹1,33,549 a month.
These figures assume 40% basic salary, PF on the full basic, gratuity inside CTC, Karnataka professional tax (₹2,500 a year; other states differ), a metro city and no other deductions. Your payslip can differ if your employer structures pay differently.
What a raise would mean
- From ₹19 LPA to ₹20 LPA adds about ₹5,756 a month in-hand.
- From ₹20 LPA to ₹21 LPA adds about ₹5,756 a month in-hand.
Frequently asked questions
What is the in-hand salary for ₹20 LPA?
On a ₹20 lakh CTC, your monthly in-hand salary is about ₹1,33,549 under the new regime (₹1,33,549 new vs ₹1,18,859 old with no deductions claimed), assuming 40% basic, PF on full basic, and Karnataka professional tax (₹2,500 a year).
How much income tax is payable on ₹20 LPA?
About ₹1,64,428 a year under the new regime (taxable income ₹17,90,520) and ₹3,40,710 under the old regime with no deductions claimed, including 4% cess.
Which tax regime is better at ₹20 LPA?
The new regime is better unless you can claim about ₹6,63,507 or more in old-regime deductions (HRA, 80C, 80D, home-loan interest and similar) on top of the standard deduction.