At this salary
- Taxable income is ₹17,56,923; your top slab rate is 20% and tax is 7.9% of CTC under the new regime.
- If your employer caps PF at the ₹25,000 ceiling, your PF falls from ₹10,000 to ₹3,000 a month and in-hand rises to ₹1,42,084.
- The old regime only beats the new one if you claim more than ₹5,33,000 of extra deductions (HRA, s.123 beyond your PF, s.126, home loan interest).
A typical metro renter: old vs new regime
Suppose you pay rent of ₹41,667 a month in one of the eight HRA cities, fill section 123 to ₹1.5 lakh and pay ₹25,000 for health insurance. Old-regime tax would be ₹1,81,560 against ₹1,57,440 in the new regime, so the new regime still saves ₹24,120.
| Old-regime deduction | Amount |
|---|---|
| HRA exemption | ₹4,00,000 |
| Standard deduction | ₹50,000 |
| s.123 (old 80C), incl. your PF | ₹1,50,000 |
| s.126 health insurance | ₹25,000 |
Employer NPS: the one big deduction left in the new regime
If your employer restructures 14% of basic (₹11,667 a month) into NPS, it is deductible under section 124(1) and your new-regime tax falls by ₹29,120 a year. The money goes to your NPS account instead of your salary, so in-hand drops but total wealth rises.
What the next ₹1 lakh of CTC is worth
Moving from ₹20 lakh to ₹21 lakh adds ₹66,546 a year to your in-hand (₹5,546 a month). Of the extra ₹1 lakh, ₹19,050 goes to income tax and the rest to PF, gratuity and employer PF.
Monthly payslip: new vs old regime
Typical month from September 2026, no professional tax, no extra old-regime deductions.
| Item | New regime | Old regime |
|---|---|---|
| Basic | ₹83,333 | ₹83,333 |
| HRA | ₹33,333 | ₹33,333 |
| Special allowance | ₹35,994 | ₹35,994 |
| Gross salary | ₹1,52,660 | ₹1,52,660 |
| Your PF | −₹10,000 | −₹10,000 |
| Income tax (TDS) | −₹13,120 | −₹26,960 |
| In-hand (before professional tax) | ₹1,29,540 | ₹1,15,700 |
Yearly tax on ₹20 LPA
| Step | New regime | Old regime |
|---|---|---|
| Gross salary | ₹18,31,923 | ₹18,31,923 |
| Deductions | −₹75,000 | −₹1,70,000 |
| Taxable income | ₹17,56,923 | ₹16,61,923 |
| Tax on slabs | ₹1,51,384 | ₹3,11,076 |
| Rebate (s.156) | −₹0 | −₹0 |
| Cess (4%) | ₹6,055 | ₹12,443 |
| Total tax | ₹1,57,440 | ₹3,23,520 |
Old regime deductions counted: Standard deduction ₹50,000; s.123 (old 80C), incl. your PF ₹1,20,000. To match the new regime, you would need ₹5,33,000 more in deductions.
Professional tax on ₹20 LPA, by state
| State | Per month | Per year | In-hand (new regime) |
|---|---|---|---|
| Telangana | ₹200 | ₹2,400 | ₹1,29,340 |
| West Bengal | ₹200 | ₹2,400 | ₹1,29,340 |
| Gujarat | ₹200 | ₹2,400 | ₹1,29,340 |
| Maharashtra | ₹200 | ₹2,500 | ₹1,29,340 |
| Karnataka | ₹200 | ₹2,500 | ₹1,29,340 |
| Madhya Pradesh | ₹208 | ₹2,500 | ₹1,29,332 |
PF on ₹20 LPA
| PF calculated on | Your PF a month | In-hand (new regime) |
|---|---|---|
| Full PF wage (₹83,333) | ₹10,000 | ₹1,29,540 |
| Statutory ceiling (₹25,000) | ₹3,000 | ₹1,42,084 |
Worked example
Fixed monthly CTC ₹1,66,667: basic ₹83,333 (50%), HRA ₹33,333, employer PF ₹10,000, gratuity ₹4,006, leaving a special allowance of ₹35,994. Gross salary ₹1,52,660 a month, or ₹18,31,923 a year. After the ₹75,000 standard deduction, taxable income is ₹17,56,923 and tax is ₹1,57,440. Monthly in-hand: ₹1,52,660 − ₹10,000 PF − ₹13,120 TDS = ₹1,29,540.
Neighbouring salaries
| CTC | In-hand a month (new regime) |
|---|---|
| ₹15 LPA | ₹1,00,509 |
| ₹16 LPA | ₹1,06,452 |
| ₹18 LPA | ₹1,18,336 |
| ₹20 LPA | ₹1,29,540 |
| ₹22 LPA | ₹1,40,631 |
| ₹25 LPA | ₹1,56,336 |
| ₹30 LPA | ₹1,80,895 |
Assumptions
- Basic 50% of fixed CTC, HRA 40% of basic, employer PF and gratuity inside CTC, PF on the full basic, no variable pay.
- PF and gratuity wages follow the Labour Code 50% rule (it does not change anything at a 50% basic).
- Use the calculator above to match your offer letter.