Income Tax on ₹20 LPA — When Does Old Regime Win?
How much tax on ₹20 LPA? Compare new vs old regime with full deduction breakdown.
✓ New Regime saves you more
₹1,66,400
per year · ₹13,867 more every month
Switch to
New Regime
Income Details
Salary / business income before deductions
FY 2025-26 Tax Comparison
Monthly In-Hand Salary
New Regime
₹1,50,633
/month
Old Regime
₹1,36,767
/month
₹13,866 more per month with New Regime
✓ Winner
New Tax Regime
₹75K std. deduction · no other deductions
Total Tax
₹1,92,400
9.6% effective rate
Old Tax Regime
HRA + 80C + 80D + NPS + 24b
Total Tax
₹3,58,800
17.9% effective rate
Tax Comparison
New Regime Rate
9.6%
Old Regime Rate
17.9%
Income Tax on ₹20 LPA — New vs Old Regime FY 2025–26
At ₹20 LPA, annual income tax under new regime is approximately ₹2,88,000 (effective rate ~14.4%). Employer NPS contribution becomes a highly effective tax-saving tool at this salary level.
Which Regime to Choose at ₹20 LPA?
Ensure employer NPS (80CCD(2)) is utilised — up to 10% of basic salary is deductible with no upper limit.
Standard Deduction Impact
The ₹75,000 standard deduction (FY 2025–26) reduces your taxable income to ₹19.25L under the new regime. This is automatically applied — no declaration or proof of investment needed. It replaced the earlier ₹50,000 standard deduction from FY 2024–25 onwards.
New Regime Tax Slabs (FY 2025–26)
- Up to ₹4 lakh — Nil
- ₹4L–₹8L — 5%
- ₹8L–₹12L — 10%
- ₹12L–₹16L — 15%
- ₹16L–₹20L — 20%
- ₹20L–₹24L — 25%
- Above ₹24L — 30%