If you recently bagged a new job or a salary hike that made your package 7 LPA (Lakh Per Annum), but one number that is quite popular among all professionals throughout India is what exactly is the 7 LPA in hand salary after deductions and taxes in 2026?
Salaried employees can now breathe a sigh of relief, as under the updated New Tax Regime, the income up to ₹12 lakh per annum is now tax-free, which is positive news. As a result, loads of people making 7 LPA might not pay any taxes.
However, deductions like Provident Fund (PF), professional tax (state-specific), and some other employer-centric charges continue to take away from the final take-home pay.
Here, we are going to demystify the 7 LPA in-hand salary per month and all deductions, and give you some valuable and very neat tips that can help you save extra money monthly.
What is the 7 LPA Salary?
First, a few terms:
- LPA (Lakhs Per Annum): Your total yearly package.
- CTC (Cost To Company): The total amount a company spends on you in a year. It also includes some concealed expenditure, like insurance and gratuity.
- Gross Salary: CTC minus non-cash benefits.
- Net Salary (In-Hand Salary): This is the amount actually deposited into your bank account after all deductions.
As such, while your offer mentions ₹7 lakh, it will be comparatively lesser than what is stated, the in-hand amount received monthly.
Salary Structure for a 7 LPA Package
Here is an illustrative example of a 7 LPA CTC
| Component | Approximate Amount (₹) |
|---|---|
| Basic Salary | 2,80,000 |
| House Rent Allowance (HRA) | 1,40,000 |
| Special Allowances | 1,80,000 |
| Provident Fund (Employer Contribution) | 33,600 |
| Gratuity | 13,468 |
| Insurance (Medical/Life) | 3,000 |
| Bonus (if included) | 50,000 |
Major Deductions from Your Salary
Even though there are no income tax liabilities up to ₹12 lakh within the new tax regime in 2026, other deductions as prescribed by law still need to be adhered to.
1. Provident Fund (PF)
- 12% of the basic salary is deducted for EPF.
- For a basic of ₹2,80,000:
- Annual PF contribution: ₹33,600
- Monthly deduction: ₹2,800
2. Professional Tax
Levied by some state governments, like Karnataka, Maharashtra, West Bengal, etc.
- Typically around ₹200 per month.
- Annual deduction: ₹2,400
3. Other Deductions
- Insurance Premiums (if company-sponsored health or life insurance)
- Loan EMIs, if opted for from salary
- Meal Card or Sodexo deductions, if applicable
Revised slab FY 2025-26 under New Tax Regime:
| Annual Income | Tax Rate |
|---|---|
| Up to ₹12 lakh | 0% |
| ₹12–15 lakh | 10% |
| ₹15 lakh+ | 15%+ |
So, if your salary is ₹7 lakh per annum, then you pay NO income tax at all!
7 LPA In Hand Salary Calculation (2025)
Let’s calculate it step-by-step:
- Annual CTC: ₹7,00,000
- Gross Salary: Approx ₹6,50,000 (after excluding employer’s PF, gratuity, insurance)
- Deductions:
- PF Employee Contribution = ₹33,600
- Professional Tax = ₹2,400
- Insurance/Other Misc. = Approx ₹3,000
Total Annual Deductions ≈ ₹39,000
Thus,
- Annual In-Hand Salary = ₹6,50,000 – ₹39,000 = ₹6,11,000
- Monthly In-Hand Salary = ₹50,916 (approximately)
Factors Affecting Your In-Hand Salary
In 2025, 7 LPA does not attract tax, but these will influence:
- PF Deductions: Basic salary’s high will mean high PF deductions also.
- The tax bracket you fall in will depend on your occupation’s place of work. Professional Tax.
- Your salary may be subject to Insurance Premium deductions.
- Your Performance Bonuses may vary from the amount due to the lack of a guarantee of a monthly payout.
How to Maximize Your In-Hand Salary
Discuss changes to basic Salary. Paying a lower Basic Salary may help reduce PF deductions (these reductions might lead to challenges in obtaining loans or retirement funds).
- Promote HRA benefits through declarations of rent while living in rented residences.
- Health insurance, transport allowances, and meal cards would be far better than Meal vouchers, a tax-efficient option.
- Even without incurring taxes presently, smart investment plans would lead to growth, consequently, tax-free growth.
Will a Salary of 7 LPA be Considered Good in 2025?
In Tier-2 or 3 cities, a 7 LPA is considered very comfortable in 2025, provided there is no taxation with an Inhand Salary under 12 LPA.
In New Delhi, Mumbai, and Bangalore, a monthly take-home of over ₹50,000 is nothing to gloat about, considering the expensive lifestyle, but for youngsters, it is more than reasonable.
Some Commonly Searched Salaries, 2025
| 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 |
Conclusion
In 2026, the 7 LPA In Hand Salary is more attractive than ever, with no income tax, a clear salary bracket, and lower deductions than previously experienced.
Planning becomes easier because over ₹50,000+ monthly transfers are directly to your account, enabling a re-evaluation of saving, investment, or lifestyle improvement strategies.
Keep in mind that comprehending your pay structure is as important as negotiating your CTC. Effective financial planning, your 7 LPA can take you a long way!
7 LPA In Hand Salaryin India Related FAQs
How much PF is deducted from a 7 lpa salary every month
Keep in mind that PF is generally 12% of your basic and not of your full CTC. In a typical 7 LPA package, the basic salary is between 40%–50% of the CTC (₹2.8 to ₹3.5 lakh per annum).
So, PF deduction on average remains between ₹2800 and ₹3500 per month. Your employer forks out the same amount separately, growing your pension pot, but not impacting your pay packet immediately.
In 2026, a 7 LPA salary can be entirely tax-free.
Yes, in the majority of cases, the New Tax Regime allows for a fully tax-free 7 LPA salary in 2026, with zero tax on income up to ₹12 lakh per annum with rebates.
This leaves LPA 7 earners without income tax liability (in the absence of, say, bonuses, interest, and/or capital gains above this 7, simply adding to total income).
What Is in Hand Monthly Salary for a 7 LPA?
Your in-hand salary will be approximately ₹ 50,916 per month after PF, professional tax, and insurance deduction.
Is a 7 Lpa Salary Good for Freshers or Early Career?
Definitely. Remains above the national median and represents significant savings, investment, and better living standards opportunities in 2026 – 7 LPA.
Is My In-Hand Salary the Same for 7 Lpa in Every Company?
Not precisely. Various other CTC structures by some companies have a higher fixed pay with a lower bonus; the take-home pay is therefore affected.
What is the difference between CTC and in-hand salary for a 7 LPA?
The cost to the company (CTC) is the total amount that your employer spends on you in an entire year, which consists of various salary components, PF contribution, bonuses, Insurance, and additional benefits.
In-hand salary is the net salary that you take home, and it is received in your bank only after all the deductions like PF, professional tax, and any other company-defined charges.
The in-hand salary per month for a 7 LPA CTC is usually ₹45,000 to ₹52,000 per month, depending on your salary structure and deductions.
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