A ₹20 LPA (₹20,00,000) CTC is approximately ₹1,29,339 per month in-hand. That's about ₹15,52,065 per year after PF, professional tax and income tax under the new regime (FY 2026-27).
If your offer letter says ₹20 LPA, the number that lands in your bank account each month is noticeably lower — because CTC (Cost to Company) bundles in your employer's PF contribution, gratuity, and the taxes deducted before you're paid. For a ₹20 LPA package, the realistic monthly take-home is around ₹1,29,339. Below is the complete breakdown so you know exactly where every rupee goes.
| Annual CTC | ₹20,00,000 |
| Basic salary (50% of CTC) | ₹10,00,000 |
| Employer PF (in CTC) | − ₹1,20,000 |
| Gratuity (in CTC) | − ₹48,100 |
| Gross salary | ₹18,31,900 |
| Employee PF (deduction) | − ₹1,20,000 |
| Professional tax | − ₹2,400 |
| Income tax + cess (new regime) | − ₹1,57,435 |
| Net annual in-hand | ₹15,52,065 |
| Net monthly in-hand | ₹1,29,339 |
This calculation assumes the most common Indian salary structure: a basic salary of 50% of CTC, the employer's 12% PF contribution and gratuity (4.81% of basic) counted inside the CTC, and the new tax regime for FY 2026-27 (income up to ₹12 lakh is effectively tax-free via the Section 87A rebate, plus a ₹75,000 standard deduction). Your actual figure can vary by a few thousand rupees depending on your company's structure, your city's professional tax, and any allowances. At ₹20 LPA, income tax (₹1,57,435/year, 20% top slab) is now a genuinely significant slice of the CTC-to-in-hand gap alongside PF and gratuity — worth checking whether the old regime's deductions (80C, HRA, home-loan interest) would beat the new regime for your specific situation. Use the interactive calculator to plug in your own numbers.
A ₹20 LPA CTC gives an approximate in-hand of ₹1,29,339 per month (about ₹15,52,065 per year) under the new tax regime for FY 2026-27, after employee PF, professional tax and income tax.
Under the new regime for FY 2026-27, the income tax (including 4% cess) on a ₹20 LPA salary is approximately ₹1,57,435 per year.
Because CTC includes your employer's PF and gratuity, which you never receive in cash, and your monthly pay is further reduced by your own PF, professional tax and TDS. So ₹20,00,000 ÷ 12 = ₹1,66,667 on paper, but the real take-home is ₹1,29,339.