Income Tax on ₹20 Lakh Salary in FY 2026-27
New regime: ₹1,92,400 including 4% cess (≈₹16,033/month TDS). Old regime with 80C + 80D: ₹3,58,800. New wins by ~₹1.66 lakh.
including 4% cess • ≈₹16,033/month TDS • resident individual under 60
Step-by-step calculation (new regime)
| Step | Amount |
|---|---|
| Gross salary | ₹20,00,000 |
| − Standard deduction (salaried) | ₹75,000 |
| Taxable income | ₹19,25,000 |
| ₹0–4L @ nil | ₹0 |
| ₹4–8L @ 5% | ₹20,000 |
| ₹8–12L @ 10% | ₹40,000 |
| ₹12–16L @ 15% | ₹60,000 |
| ₹16–19.25L @ 20% | ₹65,000 |
| Tax before cess | ₹1,85,000 |
| + 4% Health & Education Cess | ₹7,400 |
| Total tax | ₹1,92,400 |
Monthly TDS and in-hand salary
| Component (monthly) | Amount |
|---|---|
| Gross salary (₹20L ÷ 12) | ₹1,66,667 |
| − TDS (₹1,92,400 ÷ 12) | ₹16,033 |
| − Employee PF (approx) | ≈ ₹10,000 |
| − Professional tax | ₹200 |
| In-hand salary (approx) | ≈ ₹1,40,000 |
New vs old regime — which wins at ₹20L?
| Regime | Taxable income | Total tax |
|---|---|---|
| New (₹75k std ded only) | ₹19,25,000 | ₹1,92,400 |
| Old (₹50k std ded + ₹1.5L 80C + ₹25k 80D) | ₹17,75,000 | ₹3,58,800 |
Tax on other salaries
₹10 lakh salary → ₹0 · ₹12 lakh → ₹0 · ₹15 lakh → ₹97,500 · ₹50 lakh → ₹10,99,800. Or calculate your exact salary →
By TaxSetu Editorial Team · Last reviewed: 7 October 2026
Based on the Income-tax Act 2025, Income Tax Rules 2026 and CBDT notifications; sections per the Income-tax Act 1961 (as amended) with 2025-Act mappings where notified · Verify on the official portal: incometax.gov.in
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Frequently Asked Questions
₹1,92,400 in the new regime including 4% cess — an effective rate of just 9.6%. Taxable income is ₹19,25,000 after the ₹75,000 standard deduction.
No. Surcharge starts only above ₹50 lakh total income, so a ₹20L salary pays plain slab tax plus 4% cess.
The new regime in most cases: ₹1,92,400 vs ~₹3,58,800 in the old regime with 80C + 80D. Only a heavy HRA plus ₹2L home-loan interest combo can make the old regime worth checking.
Approximately ₹1,40,000 after ~₹16,033 TDS, ~₹10,000 PF and ₹200 professional tax.