Financial planning is incomplete without understanding your salary. You may be wondering what you will take home every month if you earn or expect to earn Rs8 LPA as your annual CTC. This is especially true under the new tax regime where there’s no tax up to Rs12 lakhs per annum. This comprehensive guide will explain what Rs8 LPA in-hand salary means, as well as the deductions and exclusions. It also provides a monthly salary breakdown. We’ll also answer some frequently asked questions about salary and tax.
Ctc Is a Cost to the Company.
It’s important to know the meaning of CTC before diving into tax implications and salary breakdowns. CTC is cost to company and represents the amount that a business spends annually on employees. This includes:
- Basic Salary
- House Rent Allowance (HRA)
- Contributions to the Provident Fund
- Gratuity
- Incentives or bonuses
- Additional benefits (like food coupons, health insurance, etc.
If your letter of offer mentions Rs8 LPA in-hand salary it means that the company is going to spend Rs8,00,000.00 annually for your compensation package.
Understanding the New Tax Regime (Fy 2024-25 and Onwards)
According to the Union Budget for 2023-24 the New tax Regime is now the default Tax regime with attractive slab rates, and higher rebate limits. This regime includes:
- Section 87A provides a tax rebate of up to Rs7 lakh.
- The government will extend the limit on rebates to Rs 7.5 lakh from FY 2024-25.
- Employees who earn up to 12 LPA can pay no tax.
New Tax Slabs for Fy 2024-25
| Income Scale | Rate of Income Tax |
| Rs0 – Rs3,00,000 | 0% |
| Rs3,00,001 – Rs6,00,000 | 5% |
| Rs6,00,001 – Rs9,00,000 | 10% |
| Rs9,00,001 – Rs12,00,000 | 15% |
| Rs12,00,001 – Rs15,00,000 | 20% |
| Above Rs15,000. | 30% |
Employer-side EPF Contribution allows many people earning up to Rs12 LPA to reduce their taxable income.
Salary Structure for Lpas: the Key Elements
Here’s a breakdown of a Rs8 CTC for Typical LPA:
| Component | Annual (Rs.) | Monthly (Rs.) |
| Basic Salary | 3,20,000 | 26,667 |
| House Rent Allowance (HRA) | 1,60,000 | 13,333 |
| Provident Fund (Employer) | 38,400 | 3,200 |
| Provident Fund (Employee) | 38,400 | 3,200 |
| Gratuity | 15,400 | 1,283 |
| Special Allowance | 2,27,800 | 18,983 |
| Total CTC | 8,00,000 | 66,667 |
Please note: The exact breakdown may differ by company. Others offer extra benefits like medical insurance or fuel allowance.
How Much Does 8 Lpa Pay In-Hand?
After all deductions such as:
- Contribution of employees to PF
- Taxes on professional services (if applicable).
- Tax on income (if applicable).
- Additional voluntary deductions
Calculate Your Salary In-Hand With.
1. Gross Salary Without Employer’s Pf/gratuity ):
CTC does not include employer PF or gratuity in calculating gross salaries.
Gross = Rs7,46,200 per year Rs 62,183 per month
2. Deductions:
| Type of Deduction | Annual Amount in Rs | Monthly Amount in Rs |
| Employee’s PF (12%) | 38,400 | 3,200 |
| Assumed Professional Tax | 2,400 | 200 |
| Income Tax (New Regime). | 0 | 0 |
| Additional Deductions | 0 | 0 |
| Total Reductions | 40,800 | 3,400 |
3. In-Hand Salary:
Monthly In-hand = Gross Salary + Deductions
= Rs62,183 – Rs3,400
= Rs58,783
The salary you would receive for an 8 LPA CTC in the range of Rs58,000-Rs 59,000 a month is based on standard deductions, and assumes that there will be no income taxes under the new system.
Why Is There No Income Tax on Eight Lpas Under the New Regime?
This is a simplified version:
- Gross income: Rs 8,00,000.
- Standard Tax Deduction: Rs.50,000
- Contribution to PF by the employer (exempted tax): R38,400
- Income Taxable: Rs8,00,000. – Rs50,000 = r7,50,000
- Section-87A Rebate (up to Rs7.5 lakh)
- Total Tax Due: Rs0
The tax is zero, despite the fact that the slabs indicate some tax.
Salary Breakdown by Month in Hand at 8 Lpa
Here’s a quick snapshot:
| Description | Quantity (Rs.) |
| CTC Monthly | 66,667 |
| Employer PF & Gratuity | 4,483 |
| Gross Salary Monthly | 62,183 |
| Employee PF and PT deductions | 3,400 |
| Monthly In-Hand Salary | 58,783 |
Increase Your Salary at Rs8 Per Month.
Consider these tips if you earn Rs8 LPA.
1. Change to the New Tax System
This is the best option in most cases because tax can be zero up to Rs12 per month unless there are high deductions such as HRA and 80C.
2. Choose Tax-Free Benefits
Certain benefits, such as food coupons, fuel cards and reimbursements, are not taxed.
3. Negotiate Allowances
If you rent a house, ask your employer to raise HRA. Or introduce tax saving components.
4. Don’t Double Deduct
Make sure there is no overlap in the taxable components and the exempt ones, such as including employer’s PF when calculating gross salaries.
Does the Old Regime Work Better for 8 Lpas?
No, not really. Let’s compare:
| Specifics | Old regime | New Regime HTML0 |
| Standard Deduction | Rs50,000 | Rs50,000 |
| Section 80C Maximum | Rs1,50,000 | No. |
| HRA Exemption | You can say that. | You can also find out more about the No. |
| Refund Limit for Section 87A | Five lakh rupees | R7.5 Lakh |
| The total tax on Rs8 LPA | Rs35,000+ (approx) | Rs0 |
Conclusion: With fewer tax deductions, the new regime will be more advantageous to Rs8 LPA-earners.
Examples of Lpa Salary Structures in Different Industries
Look at the different ways that companies and industries construct a Rs8 LPA package.
1) IT Industry
| Component | Annual (Rs.) |
| Basic Salary | Rs3,60,000 |
| HRA | Rs1,44,000 |
| Special Allowance | Rs2,08,800 |
| Contribution of the Employer | Rs43,200 |
| Gratuity | Rs13,920 |
| Performance Bonuses | Rs30,000 |
| Total CTC | Rs8,00,000 |
- Salary in-hand : Rs58,500/month
- Income Tax: Rs0 under new tax regime
- Benefits. Laptops, Internet reimbursement, Meal Card
2) Business Analyst (Finance Sector)
| Component | Annual (Rs.) |
| Salary Basic | Rs3,20,000 |
| HRA | Rs1,28,000 |
| Variable Bonus | Rs50,000 |
| Employer PF contribution | Rs38,400 |
| Gratuity | Rs15,400 |
| Special Allowance | Rs2,48,200 |
| Total CTC | Rs8,00,000 |
- In-hand Salary: Approx. Rs57,800/month
- Bonuses are usually paid out quarterly or annually
3) E-Commerce Sector – Operations Executive
| Component | Annual (Rs.) |
| Basic Salary | Rs3,00,000 |
| HRA | Rs1,20,000 |
| Additional Allowances | Rs2,30,000 |
| Employer PF contribution | Rs36,000 |
| Gratuity | Rs14,000 |
| Variable Bonus | Rs1,00,000 |
| Total CTC | Rs8,00,000 |
- Salary in-hand: Pay may vary from month to month because of variable pay
- tax is still zero even if the annual bonus structure has deferred payment
The examples above show how, while some of the basic components are the same in all sectors and companies, the structure may be adjusted to reflect internal policies or employee expectation.
Is Eight Lpa Enough to Cover the Cost of Living?
Answers to this question depend on the location, lifestyle and financial goals.
1) Tier 1 Cities (Delhi, Mumbai, Bengaluru)
- Rent (1BHK): Rs18,000 – Rs30,000/month
- Groceries & Utilities: Rs6,000-Rs10,000/month
- Transport/Commute: Rs3,000 – Rs6,000/month
- Savings & EMI: Rs10,000-Rs15,000/month
Budgeting is important, particularly if rent has to be paid.
2) Tier 2/3 Cities (Pune, Indore, Kochi, Lucknow)
- Rent (1BHK): Rs7,000 – Rs12,000/month
- Monthly Living Costs: Rs. 5,000 to Rs. 8,000
- Lifestyle: Less expensive than metros
In smaller cities you can earn more and save more, so Rs 8 LPA is a good salary.
Budgeting and Savings with a Salary of 8 LPA
You can achieve financial independence even if you don’t pay income taxes.
1) Budget Rule 50/30/20
- Half of your needs: Rent and groceries
- Wants 30%: Shopping, dining out and travel
- Savings/Investments of 20%: PPFs, SIPs and emergency funds
2) Smart Financial Moves
- SIP, Rs 5,000/month from your pay
- Health Insurance : Personal insurance is available beyond the employer’s coverage
- Don’t let your lifestyle creep up on you .
Would You Choose a New Regime Automatically?
comparisons are still worthwhile, even though the New Tax Regime provides zero tax on incomes between Rs7.5 and Rs8 (including standard deduction).
- The Old Regime may be more beneficial if you have high home loan or education loan rates, as well as investments with high 80C/80D returns.
- The New Regime offers a more convenient and straightforward for most professionals who earn a salary with minimum deductions.
It’s possible to change your regimes every year.
Misconceptions about 8 LPA Salary
1.) I’ll Get Rs 8,00,000 in My Bank Account!
No. Your total salary is only Rs. 7 lakhs, with even less in your pocket.
2.) Zero Tax Does Not Mean I Need to File a Return.
You are wrong. Even if you have no tax obligation, a Form ITR must be filed if your earnings exceed Rs 2.5 lakh.
3.) The Hra Still Applies to the New Regime.
No. No.
Tips and Tricks for New Earners of Rs 8 LPA
- Start investing early or SIPs to start building wealth.
- Set up an emergency fund to cover at least six months’ expenses.
- Make sure you check Form 16 for the correct tax and PF deductions.
- To avoid TDS, link PAN with Aadhaar.
- Calculate your projected tax using ‘s income tax calculator.
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 |
Questions and Answers about Rs8 LPA salary, In-Hand Payment
Q1. Is ₹8 Lpa a Good Salary in India?
It is true that Rs 8 LPA can be considered as a decent salary, particularly for professionals or freshers with 2-5 year’s experience in cities of Tier 2 and Tier 3.
Q2. Will I Pay Tax on ₹8 Lpa Under the New Tax Regime?
No. You do not pay income tax if you have a total income of up to Rs7.5 lakh.
Q3. What Is the Salary in Hand for 8 Lpas?
Depending on the company policies and deductions, your monthly salary ranges from Rs58,000- Rs59,000.
Q4. Which Tax Regime Would Be Better for a 8 Lpa?
The new tax regime will be more advantageous if you do not claim large deductions for Section 80C and HRA.
Q5. Do I Have to Invest in Order to Reduce My Tax?
Investments under 80C do not require deductions, as they aren’t allowed. Tax rates are already low and there are rebates under the new regime.
The Rs8 LPA salary package may sound attractive but the actual salary you receive will be determined by several factors, including your company’s pay structure, your tax system, and any deductions. In the 2025 tax regime, individuals earning up to 12 LPA could avoid paying income tax entirely with proper salary structure.In-Hand Salary for Rs8 LPA Earners is approximately Rs58,000-Rs59,000 per monthly. No Income Tax Liability. This package makes a good starting or mid-level offer to young professionals.