Monthly take-home pay, CTC breakup and income tax for a ₹20,00,000 package.
With a CTC of ₹20,00,000 (20 LPA), your estimated in-hand salary is ₹1,29,339 per month (₹15,52,065 a year) under the new tax regime, assuming basic pay is 50% of CTC and full PF.
Income tax / year
₹1,57,435
| Component | Yearly | Monthly |
|---|
| Cost to company (CTC) | ₹20,00,000 | ₹1,66,667 |
| Employer PF (12% of basic) | − ₹1,20,000 | − ₹10,000 |
| Gratuity (4.81% of basic) | − ₹48,100 | − ₹4,008 |
| Gross salary | ₹18,31,900 | ₹1,52,658 |
| Employee PF | − ₹1,20,000 | − ₹10,000 |
| Professional tax | − ₹2,400 | − ₹200 |
| Income tax (new regime) | − ₹1,57,435 | − ₹13,120 |
| In-hand salary | ₹15,52,065 | ₹1,29,339 |
How your salary structure changes the in-hand amount
| Salary structure | Monthly in-hand |
|---|
| Basic 50% of CTC, full PF (12% of basic) | ₹1,29,339 |
| Basic 50% of CTC, PF capped at ₹1,800/month | ₹1,44,033 |
| Basic 40% of CTC, full PF | ₹1,33,558 |
A higher basic salary means more goes into PF (your savings) and less comes home each month. If your employer caps PF at the statutory wage limit of ₹15,000, your monthly take-home rises.
Income tax on 20 LPA
Your taxable salary under the new regime is ₹17,56,900 after the ₹75,000 standard deduction. Your estimated tax including 4% cess is ₹1,57,435 a year, or about ₹13,120 a month deducted as TDS. See the full comparison with the old regime on income tax by salary.
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Frequently asked questions
What is the in-hand salary for 20 LPA?
For a CTC of ₹20,00,000, the in-hand salary is about ₹1,29,339 per month under the new tax regime, assuming basic is 50% of CTC with full PF and gratuity included in CTC.
How much tax will I pay on a 20 LPA salary?
About ₹1,57,435 a year (₹13,120 a month) under the new regime, including 4% cess.
Why is in-hand salary less than CTC?
CTC includes employer PF and gratuity that you don't receive monthly. Employee PF, professional tax and income tax are also deducted from your gross salary.