Income Tax on 20 Lakh Salary — Compare Old vs New Regime

Calculate income tax on Rs 20 lakh salary. Detailed comparison of old and new tax regimes with strategies to minimize tax at this income level.

Rs 20 lakh salary puts you in the higher income bracket where tax planning has significant impact. Under the new regime tax on Rs 20 lakh is approximately Rs 247000 (after standard deduction). Under the old regime with aggressive deductions (80C + 80D + NPS + HRA + home loan) tax can drop to Rs 130000-170000. The potential savings of Rs 77000-117000 make it worth spending time on regime comparison and tax planning.

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Income Tax Calculator (India FY 2025-26)

Taxable Income
₹11.25 L
Total Tax (incl. 4% cess)
₹0
Effective Tax Rate
0.0%
ℹ️ Section 87A rebate applied: Tax of ₹52,500 is fully rebated because taxable income (₹11.25 L) is within ₹12,00,000 under the new regime. Your tax is ₹0.
Monthly Take-Home: ₹1,00,000

Key Information

ParameterDetails
New Regime Tax (20 LPA)Approximately Rs 247000
Old Regime (max deductions)Rs 130000 - Rs 170000
Monthly Take-Home (New Regime)Rs 1.45 - 1.50 lakh approx
Tax Savings PotentialRs 77000 - Rs 117000

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Frequently Asked Questions

Which regime is better for 20 lakh salary?

At 20 LPA the old regime is usually better IF you have substantial deductions. With 80C (Rs 1.5L) + 80D (Rs 50K self and parents) + NPS 80CCD1B (Rs 50K) + HRA metro (Rs 3L+) your deductions can exceed Rs 5 lakh bringing old regime tax to Rs 130000-150000 versus Rs 247000 under new regime. Without HRA or home loan the gap narrows and new regime may be simpler.

How to save maximum tax on 20 lakh salary?

Under old regime: maximize 80C (Rs 1.5L ELSS) + health insurance 80D (Rs 50K) + NPS 80CCD1B (Rs 50K) + claim full HRA exemption + home loan interest Section 24 (Rs 2L if applicable). This combination can reduce taxable income from Rs 20L to Rs 14-15L saving Rs 80000-100000 in tax compared to the new regime.

What is take-home on 20 LPA?

Under new regime: approximately Rs 1.45-1.50 lakh per month after tax EPF and professional tax. Under old regime with good planning: approximately Rs 1.53-1.60 lakh per month. The difference of Rs 8000-10000 monthly (Rs 96000-120000 annually) is significant and worth the effort of maintaining investment proofs and filing under old regime.

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Last updated: March 2026