A CTC of ₹20 lakh pays about ₹1,32,505 a month in your bank account in FY 2026-27 under the new tax regime. Full breakdown, old vs new regime, and the PF-capped scenario.
₹20 lakh CTC — monthly in-hand (new regime)₹1,32,505₹15,90,060 a year · 79.5% of CTC
Assumes basic pay = 50% of CTC (the minimum "wages" share under the new labour codes), EPF on full basic, ₹2,500 professional tax (Maharashtra/Karnataka-type states), no gratuity, bonus or variable pay inside the CTC, resident below 60.
New vs old regime at ₹20 lakh
New regime
Old regime
Gross salary
₹18,80,000
₹18,80,000
Standard deduction
₹75,000
₹50,000
Professional tax deduction
—
₹2,500
80C (your EPF)
—
₹1,20,000
Taxable income
₹18,05,000
₹17,07,500
Tax + cess
₹1,67,440
₹3,37,740
Monthly in-hand
₹1,32,505
₹1,18,313
The new regime leaves you ₹14,192 more per month.
The old regime only wins if you can claim about ₹5,45,832 of extra deductions on top of your EPF — for example HRA exemption, 80D health insurance, home-loan interest (section 24b, up to ₹2 lakh) or the remaining 80C room (₹30,000) plus 80CCD(1B) NPS (₹50,000).
Your monthly in-hand in everyday things
8,833×Cutting chai₹15 each6,625×Samosas₹20 each1,656×Masala dosas₹80 each530×Movie tickets₹250 each
What ₹1,32,505 a month could buy. Example prices 2026 (rounded estimates; they vary a lot by city): cutting chai ₹15, samosa ₹20, masala dosa ₹80, multiplex movie ticket ₹250.
If your EPF is capped at ₹1,800 a month
Many employers deduct PF only on the ₹15,000 statutory wage ceiling. Then the employer share inside your CTC is just ₹21,600 a year, so gross pay and take-home are higher (but you save less for retirement):
CTC (cost to company) is everything your employer spends on you, including its own 12% EPF contribution, which goes to your PF account rather than your bank. Out of the gross salary of ₹18,80,000, you then lose your own EPF share, professional tax and TDS on salary. For FY 2026-27 the Union Budget kept the new-regime slabs unchanged: nil up to ₹4 lakh, 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh and 30% above, plus 4% health and education cess.
Your top slab: taxable income of ₹18,05,000 falls in the 20% slab of the new regime; every extra ₹1 lakh of gross pay adds about ₹20,800 in tax.
Professional tax is a state levy capped at ₹2,500 a year. States such as Delhi, Uttar Pradesh and Haryana do not charge it — add ₹208 a month to the figure above if you work there. It is deductible only under the old regime.
What is the in-hand salary for ₹20 lakh CTC in FY 2026-27?
About ₹1,32,505 a month under the new tax regime, assuming basic pay is 50% of CTC, 12% EPF from both sides and ₹2,500 professional tax. Income tax is ₹1,67,440 a year.
Is the new or old regime better for ₹20 lakh salary?
The new regime: it saves ₹1,70,300 a year compared with the old regime when your only deduction is EPF. The old regime would need about ₹5,45,832 of extra deductions such as HRA, 80D or home-loan interest to break even.
How much income tax is due on ₹20 lakh CTC?
₹1,67,440 a year under the new regime (taxable income ₹18,05,000 after the ₹75,000 standard deduction) and ₹3,37,740 under the old regime, both including 4% cess.