Old vs New Tax Regime for Rs 20 Lakh Salary
Compare old versus new regime tax liability for a Rs 20,00,000 gross annual income with home loan interest deduction.
On a gross annual income of ₹20,00,000, the new regime works out cheaper, saving you ₹1,04,000 compared to the old regime. New regime tax: ₹1,92,400, old regime tax: ₹2,96,400.
- Gross annual income
- ₹20,00,000
- Section 80C
- ₹1,50,000
- Section 80D
- ₹25,000
Better regime: new
Saves ₹1,04,000₹1.92 Lakh
₹1,92,400
total tax payable
New regime tax
₹1.92 Lakh
₹1,92,400
take-home: ₹18,07,600
Old regime tax
₹2.96 Lakhs
₹2,96,400
take-home: ₹17,03,600
New regime take-home (monthly)
₹1.51 Lakh
₹1,50,633
Old regime take-home (monthly)
₹1.42 Lakh
₹1,41,967
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Computed for FY 2025-26 (AY 2026-27). New regime uses a Rs 75,000 standard deduction and full 87A rebate up to Rs 12 lakh taxable income; old regime uses a Rs 50,000 standard deduction plus your claimed 80C, 80D, 80CCD(1B), HRA, and home loan interest deductions, with rebate up to Rs 5 lakh taxable income. Health and education cess of 4% applies to both.