Salary guide
20 LPA in-hand salary per month (FY 2026-27)
On a 20 LPA CTC, your in-hand salary is about ₹1,32,505 a month in FY 2026-27 if your employer's PF is part of the CTC, or ₹1,40,425 if PF is paid on top. Income tax under the new regime is ₹1,67,440 for the year, about ₹13,953 a month, on a taxable income of ₹18,05,000.
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- PF on top of CTC
- ₹1,40,425
- Income tax a year
- ₹1,67,440
- Gross a month
- ₹1,56,667
20 LPA salary breakdown: CTC to in-hand
Two cases, because offer letters differ: your employer's PF can be part of the CTC or paid on top of it.
Per month
| Per month | PF inside CTC | PF on top of CTC |
|---|---|---|
| CTC (cost to company) | ₹1,66,667 | ₹1,66,667 |
| Basic pay50% of CTC | ₹83,333 | ₹83,333 |
| HRA40% of basic | ₹33,333 | ₹33,333 |
| Special and other allowancesthe balance | ₹40,000 | ₹50,000 |
| Employer PF12% of basic, goes to your PF account | ₹10,000 | ₹10,000 |
| Gross salarypaid before deductions | ₹1,56,667 | ₹1,66,667 |
| Employee PF12% of basic | −₹10,000 | −₹10,000 |
| Professional taxKarnataka | −₹208 | −₹208 |
| Income taxnew regime, with 4% cess | −₹13,953 | −₹16,033 |
| In-hand salary | ₹1,32,505 | ₹1,40,425 |
Per year
| Per year | PF inside CTC | PF on top of CTC |
|---|---|---|
| CTC (cost to company) | ₹20,00,000 | ₹20,00,000 |
| Basic pay50% of CTC | ₹10,00,000 | ₹10,00,000 |
| HRA40% of basic | ₹4,00,000 | ₹4,00,000 |
| Special and other allowancesthe balance | ₹4,80,000 | ₹6,00,000 |
| Employer PF12% of basic, goes to your PF account | ₹1,20,000 | ₹1,20,000 |
| Gross salarypaid before deductions | ₹18,80,000 | ₹20,00,000 |
| Employee PF12% of basic | −₹1,20,000 | −₹1,20,000 |
| Professional taxKarnataka | −₹2,500 | −₹2,500 |
| Income taxnew regime, with 4% cess | −₹1,67,440 | −₹1,92,400 |
| In-hand salary | ₹15,90,060 | ₹16,85,100 |
Monthly figures are the yearly amounts divided by 12 and rounded to the rupee, so a row can be off by ₹1. In Karnataka, professional tax is ₹200 a month (₹300 in February) once monthly salary is ₹25,000 or more.
Income tax on 20 LPA under the new regime
| Per year | PF inside CTC | PF on top of CTC |
|---|---|---|
| Gross salary | ₹18,80,000 | ₹20,00,000 |
| Standard deduction | −₹75,000 | −₹75,000 |
| Taxable income | ₹18,05,000 | ₹19,25,000 |
| Tax on the slabs | ₹1,61,000 | ₹1,85,000 |
| Rebate (section 156, formerly 87A) or marginal relief | ₹0 | ₹0 |
| Health and education cess (4%) | ₹6,440 | ₹7,400 |
| Income tax for the year | ₹1,67,440 | ₹1,92,400 |
| Income tax per month | ₹13,953 | ₹16,033 |
| Taxable income | Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4 lakh to ₹8 lakh | 5% |
| ₹8 lakh to ₹12 lakh | 10% |
| ₹12 lakh to ₹16 lakh | 15% |
| ₹16 lakh to ₹20 lakh | 20% |
| ₹20 lakh to ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
Assumptions and sources
- FY 2026-27 (1 April 2026 to 31 March 2027), called tax year 2026-27 under the Income-tax Act, 2025. New tax regime, which is the default. Resident individual below 60 with salary as the only income.
- Basic pay is 50% of CTC, HRA is 40% of basic and the rest is special allowance. The new regime gives no HRA exemption, so this split does not change your tax.
- PF is 12% of basic from you and 12% from your employer, on the full basic pay. Your basic pay is above the ₹25,000 PF wage ceiling, so your employer may restrict PF to ₹3,000 a month (and PF is optional if you join above the ceiling); then your in-hand pay is higher.
- Standard deduction of ₹75,000. Rebate under section 156 makes tax nil when taxable income is ₹12 lakh or less, with marginal relief just above it. 4% health and education cess on the tax.
- Professional tax at Karnataka rates: ₹2,500 a year. Other states have different rates, and some have none. It is not deductible under the new regime.
- Not included: gratuity, variable pay, joining bonus, insurance, meal cards or an employer NPS contribution. Check your offer letter for these.
Sources, checked 3 Nov 2026Finance Bill 2026 memorandum: rates of income-tax for tax year 2026-27Income-tax Act, 2025, section 156: rebateIncome-tax Act, 2025, section 19: standard deductionFAQs: revision of the EPFO wage ceiling from ₹15,000 to ₹25,000 a monthProfessional tax: employer portal and ratesThe Code on Wages, 2019, section 2(y): wages
How is tax worked out on 20 LPA?
With PF inside the CTC, your taxable income is ₹18,05,000. The new regime taxes it band by band, as in the slab table above: nothing on the first band, then a higher rate on each band after it. That adds up to ₹1,61,000; with 4% cess, your tax is ₹1,67,440 for the year.
With PF on top of the CTC, your gross salary is higher, and so is the tax: ₹1,92,400.
Is 20 LPA a good salary?
It means about ₹1,32,505 a month in hand after ₹1,67,440 of income tax a year. Whether that is good depends on your experience, your city and your costs. At this level, check how much of the CTC is variable pay or stock, because those parts can change your monthly pay a lot.
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Questions freshers ask
About ₹1,32,505 a month when the employer's PF is inside the CTC, or ₹1,40,425 when PF is paid on top. Before any deductions, 20 LPA is ₹1,66,667 a month.
₹1,67,440 for the year, or about ₹13,953 a month, under the new regime in FY 2026-27, including 4% cess. That is with PF inside the CTC; with PF on top, the tax is ₹1,92,400.
₹10,000 a month from your salary (12% of a ₹83,333 basic), and your employer adds the same amount. Your basic pay is above the ₹25,000 PF wage ceiling, so your employer may restrict PF to ₹3,000 a month (and PF is optional if you join above the ceiling); then your in-hand pay is higher.
About ₹13,953 a month with PF inside the CTC, if your employer spreads the year's ₹1,67,440 of tax evenly. The actual TDS can vary from month to month, for example in a month when a bonus is paid.