20 LPA in Hand: Monthly Salary After Tax and PF
The short answer
A CTC of 20 lakh a year leaves about ₹1,42,518 a month in hand under the new tax regime. Tax is about ₹1,76,908 a year, with taxable income of about 18.51 lakh reaching the 20 percent band, so a good share of each extra lakh now goes to tax.
The total in your offer letter, for one year.
Usually 40% to 50%. Your offer letter's salary breakup shows it.
The part paid only if targets are met. Leave 0 if none.
It depends on your state. Many states take ₹200 a month.
Things the company pays for that you do not receive as cash, such as health insurance or food coupons.
Monthly in-hand salary
₹1,42,518
An average month over the year, after tax
Gross salary a year
₹19,25,520
Income tax a year
₹1,76,908
In hand a year
₹17,10,212
How the CTC turns into pay, step by step
| Cost to company (CTC) | ₹20,00,000 |
| less the company's provident fund | -₹36,000 |
| less gratuity set aside | -₹38,480 |
| Gross salary (what you earn) | ₹19,25,520 |
| less your provident fund | -₹36,000 |
| less professional tax | -₹2,400 |
| less income tax and cess | -₹1,76,908 |
| In hand for the year | ₹17,10,212 |
How the tax was worked out. Gross salary ₹19,25,520 − standard deduction ₹75,000 = taxable income ₹18,50,520. Professional tax is not deducted before tax in the new regime. Tax on the slabs ₹1,70,104, plus 4% cess ₹6,804.
What this uses, and what it leaves out
- Income tax on the new tax regime, AY 2026-27, as published by the Income Tax Department: slabs from nil up to ₹4 lakh to 30% above ₹24 lakh, a ₹75,000 standard deduction, and no tax up to ₹12 lakh of taxable income (with relief just above it). The 2026 Budget kept these slabs. The old regime and savings deductions are not covered.
- Provident fund: 12% of basic, from you and from the company. The compulsory limit was raised to ₹25,000 a month in September 2026.
- Your payslip can differ: companies split pay in their own way (HRA, allowances, reimbursements) and tax is deducted in monthly parts. Treat this as a good estimate, not tax advice.
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How to: 20 LPA in Hand: Monthly Salary After Tax and PF
- 1The CTC is already set to ₹20,00,000; change it to your own offer.
- 2Check the basic pay share on your offer letter, usually 40 to 50 percent.
- 3Add any variable pay that is part of the CTC.
- 4Read the monthly in-hand and the yearly deductions.
At a glance
- CTC
- ₹20,00,000 a year
- In hand
- About ₹1,42,518 a month (₹17,10,212 a year)
- Income tax
- ₹1,76,908 a year
- Assumes
- Basic pay 40% of CTC, provident fund within its monthly ceiling, gratuity inside CTC, ₹200 professional tax a month, no variable pay, new tax regime
Frequently asked questions
Is 20 LPA taxed at 30 percent?
No. Tax is charged band by band, and only the income above ₹24 lakh in the new regime is taxed at 30 percent. At this salary, the top band you reach is 20 percent.
Does the variable pay change the tax?
It is taxed as salary in the year it is paid, so a high variable part raises the tax that year. Enter it in the tool to see the effect.
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