Salary in India is distributed under 2 categories, in-hand salary and CTC. However, everyone is confused about the two processes. Both are different concepts. Earning a 25 LPA in hand salary (Lakhs per Annum) in India is a spectacular thing, but many people think about how much salary ends up in their bank account each month. With income tax, professional tax, employee provident fund (EPF), and sometimes deductions like health insurance or gratuity, the in-hand salary can be quite different from the CTC (cost to company) figure you first see. Understanding these deductions is important if you’re planning your budget or thinking about your savings. In this guide, we’ll break down what your monthly and yearly in-hand salary could look like after taxes and other deductions on a 25 LPA package.
What is a Salary Calculator?
An effective tool for figuring out your take-home pay after the company’s deductions is a salary calculator. These deductions may include the PF (Provident Fund), Professional tax, Income tax, home loans interest, and other monthly deductions that are included in your annual income.
The Salary calculator tool also helps you plan better and negotiate smarter by clearly showing how each part of your salary affects your in-hand pay. In simple terms, it makes it easier to understand how much money you’ll get after all the deductions, based on your gross salary or CTC (Cost to Company). To make the salary calculations easier, while joining the job, the employee is provided with the CTC form, in which monthly bonuses, monthly professional taxes, monthly PF of the employee, and other deductions are mentioned to easily calculate the net salary.
How to Use Salary Calculator?
To use the salary calculator and to know your in-hand salary, follow these simple steps:
- Start by choosing whether you want to calculate your monthly or yearly salary.
- Then, enter your gross salary and any bonuses you receive to get your total Cost-to-Company (CTC).
- Next, provide the basic salary percentage of your CTC. By default, the calculator assumes it to be 50%, but you can change it if needed.
Once you’ve filled in these details, the calculator will instantly show you a clear breakdown, including:
- Basic Salary
- House Rent Allowance (HRA)
- Other Allowances
- Provident Fund (PF)
- Professional Tax
- Total Deductions
- Net Salary (before tax)
- Income Tax
- Net Salary After Tax
This helps you easily understand how much of your salary reaches your hands after all deductions.
25 LPA In Hand Salary Income Regime for Financial Year 2025-2026
According to the new budget of 2025-2026, a significant change is there for taxation and the rates. For the 25 LPA in Hand Salary, a tax rate of 30% was also introduced. The new and revised table for the Income Tax FY 2025-26 is as follows:
| Income Tax Slabs | Tax Rates |
| Up to Rs. 4 lakhs | Not Applicable |
| Rs. 4 lakhs – Rs. 8 lakhs | 5% |
| Rs. 8 lakhs – Rs. 12 lakhs | 10% |
| Rs. 12 lakhs – Rs. 16 lakhs | 15% |
| Rs. 16 lakhs – Rs. 20 lakhs | 20% |
| Rs. 20 lakhs – Rs. 24 lakhs | 25% |
| Above Rs 24 Lakhs | 30% |
Deductions & Reliefs in the New Tax Policy of 2025
Some of the deductions & Reliefs according to the New Tax Policy of 2025 are as follows:
- Transport Allowances for the disabled or specially abled persons.
- Convenience allowances are received to meet the transportation needs of the employees.
- Any compensation in the salary received as a cost of travel, tour, or transfers.
- Daily expenses or allowances are obtained to cover regular or everyday necessities.
- Expenditure for official purposes.
- Amounts received from voluntary retirement (Section 10(10C)), gratuity (Section 10(10)), and leave encashment (Section 10(10AA)) can be exempt from tax, up to certain limits.
- Section 24 allows you to deduct interest paid on a home loan for a property that is rented out.
- Our employer’s contribution to your National Pension System (NPS) account qualifies for a tax deduction under Section 80CCD(2).
- If you’re an employer, hiring new employees can get you extra tax benefits under Section 80JJAA.
Estimated Salary Structure for the 25 LPA In-hand Salary
After discussing the New Tax Policy Regime and its Deductions & Reliefs, let’s move on to the Estimated Salary Structure for the 25 LPA In-hand Salary.
| Components | Monthly (in ₹) |
| Basic Salary | ₹9 lakh |
| HRA | ₹4.5 lakh |
| Special Allowances | ₹6 lakh |
| Bonus | ₹3 lakh (paid annually) |
| Employer PF & Gratuity | ₹2.5 lakh |
| After Deductions | |
| Employee PF | (₹9 lakh x 12%): ₹10,800/month |
| Professional Tax | ₹200/month (varies) |
| Income Tax | ₹25,000–₹30,000/month |
| Net In-hand Salary | ₹1.25 lakh to ₹1.30 lakh per month |
Estimated Salary Structure for ₹ 25 LPA CTC Salary
The Estimated Salary Structure for ₹ 25 LPA CTC Salary is as follows:
| Components | Monthly (in ₹) |
| Basic Salary | ₹8–10 lakh |
| HRA (House Rent Allowance) | ₹4–5 lakh |
| Special Allowances | ₹6–7 lakh |
| Bonus | ₹2–3 lakh |
| Gratuity & Provident Fund (Employer Contribution) | ₹1–1.5 lakh |
| Other Perks (Medical, Insurance, etc.) | ₹0.5–1 lakh |
Note: The exact distribution of the salary depends on the employee’s salary structure.
Components of Gross Salary for the 25 LPA In-Hand Salary
- Basic Salary– The basic salary is a key part of your overall CTC (Cost to Company) and is the fixed amount an employer pays for your work, without including any bonuses or benefits. It usually makes up around 40% to 50% of your total salary. The exact basic salary can vary depending on different things like the industry you work in, your job role, company policies, and your experience level.
- House Rent Allowance– House Rent Allowance (HRA) is a part of your salary that your company gives you to help cover your rent if you live in a rented house. If you live in a metro city like Delhi, Mumbai, Chennai, or Kolkata, HRA is usually 50% of your basic salary. For non-metro cities, it’s 40%. The good news is, HRA can help you save on taxes. Under Section 10(13A) of the Income Tax Act, 1961, a part of your HRA can be tax-free, depending on your salary, rent paid, and where you live.
- Leave Travel Allowance- Leave Travel Allowance is given to employees to help them and their families take advantage of their domestic travel expenses during vacations. This allowance also covers the ticket fare of airways and railways.
- Special Allowance– Employees often receive a special allowance along with their basic salary. This extra amount is given for various reasons, such as the nature of the job, company policies, or performance. The amount of special allowance can differ from one company to another, as it depends on internal guidelines and other factors.
- Employee Provident Fund- Almost every company in India includes a compulsory savings plan called the Employee Provident Fund (EPF). In this scheme, 12% of your basic salary is automatically deducted every month and put into your EPF account. Your employer also contributes an equal amount to your EPF, helping your savings grow faster. This amount is kept aside for your future, especially after retirement. Another benefit is that your contribution to EPF is eligible for tax deduction under Section 80C of the Income Tax Act, 1961, up to ₹1.5 lakh per year.
In-Hand Salary Breakdown for Various Annual Packages (LPA)
| Annual Salary (LPA – Lakh per Annum) | Monthly Salary Range (INR) | Yearly Salary Range (INR) |
| 1 LPA in Hand Salary | ₹7,600 – 8,300 | ₹91,600 – 1,00,000 |
| 1.5 LPA in Hand Salary | ₹11,500 – 12,500 | ₹1,38,600 – 1,50,000 |
| 2 LPA in Hand Salary | ₹15,500 – 16,600 | ₹1,85,600 – 1,97,600 |
| 2.3 LPA in Hand Salary | ₹17,817 – 19,100 | ₹2,13,000 – 2,27,600 |
| 3 LPA in Hand Salary | ₹23,300 – 25,000 | ₹2,79,600 – 2,97,600 |
| 3.8 LPA in Hand Salary | ₹29,500 – 31,400 | ₹3,54,800 – 3,77,600 |
| 3.9 LPA in Hand Salary | ₹30,350 – 32,300 | ₹3,64,200 – 3,87,600 |
| 4 LPA in Hand Salary | ₹31,100 – 33,133 | ₹3,73,600 – 3,97,600 |
| 4.5 LPA in Hand Salary | ₹30,000–₹32,000 | ₹3,60,000- 3,80,000 |
| 5 LPA in Hand Salary | ₹38,900 – 41,400 | ₹4,67,600 – 4,97,600 |
| 5.5 LPA in Hand Salary | ₹42,800 – 45,600 | ₹5,14,600 – 5,47,600 |
| 6 LPA in Hand Salary | ₹45,500 – 49,800 | ₹5,61,600 – 5,97,600 |
| 7 LPA in Hand Salary | ₹51,000 – 54,600 | ₹6,12,000 – 6,55,200 |
| 8 LPA in Hand Salary | ₹57,200 – 62,400 | ₹6,87,400 – 7,49,600 |
| 8.5 LPA in Hand Salary | ₹60,400 – 66,384 | ₹7,24,800 – 7,96,600 |
| 9 LPA in Hand Salary | ₹63,600 – 70,300 | ₹7,63,200 – 8,43,600 |
| 9.2 LPA in Hand Salary | ₹64,900 – 71,800 | ₹7,74,800 – 8,62,400 |
| 9.5 LPA in Hand Salary | ₹66,800 – 73,700 | ₹8,00,000 – 8,84,900 |
| 9.6 LPA in Hand Salary | ₹67,400 – 74,400 | ₹8,08,000 – 8,93,000 |
| 9.8 LPA in Hand Salary | ₹68,700 – 75,700 | ₹8,24,400 – 9,09,000 |
| 10 LPA in Hand Salary | ₹70,000 – 77,000 | ₹8,40,000 – 9,25,000 |
| 11 LPA in Hand Salary | ₹76,300 – 76,300 | ₹9,15,600 – 10,05,000 |
| 11.5 LPA in Hand Salary | ₹79,300 – 87,100 | ₹9,51,600 – 10,45,300 |
| 12 LPA in Hand Salary | ₹82,000 – 90,400 | ₹9,84,000 – 10,85,400 |
| 13 LPA in Hand Salary | ₹87,600 to 97,100 | ₹10,51,200 to 11,65,800 |
| 13.5 LPA in Hand Salary | ₹90,300 to 1,00,400 | ₹10,83,600 to 12,05,700 |
| 14 LPA in Hand Salary | ₹93,100 to 1,03,800 | ₹11,17,200 to 12,45,800 |
| 15 LPA in Hand Salary | ₹98,600 to 1,10,500 | ₹11,83,200 to 13,26,000 |
| 16 LPA in Hand Salary | ₹1,04,100 to 1,17,100 | ₹12,49,200 to 14,06,200 |
| 16.5 LPA in Hand Salary | ₹1,06,900 to 1,20,500 | ₹12,82,800 to 14,46,800 |
| 17 LPA in Hand Salary | ₹1,09,700 to 1,23,700 | ₹13,16,400 to 14,84,400 |
| 17.5 LPA in Hand Salary | ₹1,12,400 to 1,26,700 | ₹13,48,800 to 15,21,000 |
| 18 LPA in Hand Salary | ₹1,15,200 to 1,29,800 | ₹13,82,400 to 15,57,700 |
| 19 LPA in Hand Salary | ₹1,20,700 to 1,35,900 | ₹14,48,400 to 16,31,000 |
| 20 LPA in hand salary | ₹1,26,200 to 1,42,000 | ₹15,14,400 to 17,04,300 |
FAQS:
1) What is the Salary Calculator?
A salary calculator is a powerful tool that helps you calculate your take-home salary after the company’s deductions.
2) According to the New Taxation Policy, the Employees with Less Than 4 Lakh Lpa Have to Pay the Tax or Not?
No, the employees with less than 4 lakh LPA are not eligible to pay the tax.
3) What Is the Basic Salary Formula?
To calculate Basic salary, use this formula:
Basic Salary = Gross Pay – Total Allowances (HRA, LTA, medical insurance, dearness allowance, etc.)
4) What Are the Components of Gross Salary?
The components of gross salary are Basic Salary, House Rent Allowance, Leave Travel Allowance, Special allowance, and Employee Provident Fund.