For many working professionals, reaching a 50 LPA in hand Salary is like achieving a significant milestone in their lives. 50 LPA is a figure that immediately makes people say, “Wow, that’s huge!”. But the truth is that 50 LPA is a great figure to achieve. But the in-hand salary that you actually take home every month is different from the figure that you see in your offer letter. The 50 LPA salary will change after certain deductions in your CTC and in-hand salary structure. In this blog, you will learn more about the 50 LPA salary, how much it lands in your bank account, the new tax regime policy, and what the tax saving options are on a 50 LPA salary.
CTC vs In-Hand Salary
When companies announce a package of 50 LPA Salary, they usually talk about the CTC. However, CTC is different from your actual in-hand salary. In this section, let’s clear your basic concept of the CTC vs the In-Hand Salary:
CTC: CTC basically refers to the Cost to Company. It is the type of salary structure that includes everything that the company spends on you. It includes the fixed salary, allowances, various bonuses, different insurances, PF (Provident Fund), and sometimes even the stock investment options.
Various Components of the CTC Salary Structure:
- Basic Salary- The basic salary is the backbone of your pay structure. It usually makes up around 40% to 50% of your total CTC and stays fixed. Other benefits like provident fund and gratuity are also calculated in this amount.
- Allowances- Next come the allowances, which are extra amounts given by the employer to meet different expenses. Some are taxable, while others may get tax exemptions. Common types include:
- House Rent Allowance (HRA): Helps you manage rental expenses and is partly tax-free, depending on the city you live in.
- Dearness Allowance (DA): Mostly offered in government jobs to balance out rising inflation.
- Leave Travel Allowance (LTA): Covers travel expenses when you go on leave, with certain tax benefits.
- Medical Allowance: Supports medical expenses for you and your family, with tax perks if bills are submitted.
- Conveyance Allowance: Meant for your daily travel from home to work.
- Special Allowances: Extra amounts added to adjust your CTC, but these are fully taxable.
In-Hand Salary- In-Hand salary structure basically refers to the salary that comes every month in your bank account after the deductions like income tax, professional tax, and the provident fund.
So, if your salary is 50 LPA CTC, then you’re in-hand salary will be 60-70% of it, according to your tax planning and the company’s policy.
New Income Tax Slab Rate for Financial Year 2025-26
In the Union Budget announced in 2025, some of the changes in the new tax slab and the rates were introduced. The tax limit has been enhanced from 3 lakhs to 4 lakhs, and the tax rate of 25% to 30% was also introduced.
The following is a new tax regime for the 50 LPA in hand salary for the Financial Year 2025-26:
| Income Tax Slabs | Income Tax Rate |
|---|---|
| Up to Rs 4 Lakhs | NIL |
| Rs 4 Lakhs-8 Lakhs | 5% |
| Rs 8 Lakhs-12 Lakhs | 10% |
| Rs 12 Lakhs-16 Lakhs | 15% |
| Rs 16 Lakhs-20 Lakhs | 20% |
| Rs 20 Lakhs-24 Lakhs | 25% |
| Above 24 Lakhs | 30% |
The overall surcharge rate is capped at 25% instead of 37% for individuals. However, the standard deduction for the salary income of the new tax regime is Rs 75,000.
50 LPA in hand Salary: Complete Breakdown According to the New Tax Regime
The complete breakdown of the 50 LPA in-hand salary structure is mentioned below:
| Components | Amount |
| Annual CTC (Cost to Company) | Rs 50,00,000 |
| Monthly Gross Salary | Rs 14,16,666 |
| Standard Deductions (like EPF, etc.) | Rs 1,00,000 |
| Taxable Income | Rs 49,00,000 |
| Tax Slab (Acc. to the New Tax Regime) | 30% + cess |
| Annual Tax Deduction | Rs 17,00,000 to Rs 18,00,000 |
| Estimated In-hand Salary Yearly | Rs 32,00,000 to Rs 33,00,000 |
| Estimated In-hand Salary Monthly | Rs 2.7 lakhs to Rs 3.2 lakhs |
So, an individual will get Rs 2.7 lakhs to Rs 3.2 lakhs total in-hand salary from the 50 LPA in-hand salary package.
Income Tax Calculation Example on 50 LPA in hand Salary
Below is a detailed income tax calculation example on a 50 LPA in-hand salary:
Suppose Mr Avnish has a salary package of Rs 50 Lakhs. He claimed an HRA exemption of Rs 3.5 lakhs, LTA exemption of Rs 60,000, Children’s Education and hostel allowance of Rs 9,600. Professional tax of Rs 2,400. He also invested a total of Rs 1.5 lakhs in PPF, and paid a medical insurance premium of Rs 50,000 for his senior citizen parents. Mr Avnish also invested Rs 25,000 in his child’s education loan.
So, for the Financial year 2025-26, the tax liabilities of Mr Avnish will be calculated as given below according to the old and new tax regimes:
| Particulars | Under the Old Tax Regime (FY 2025-26) | Under the New Tax Regime (FY 2025-26) |
| Gross Salary | 50,00,000 | 50,00,000 |
| Exemptions u/s 10 | ||
| HRA | 3,50,000 | NA |
| LTA | 60,000 | NA |
| Children’s Education & Hostel Allowances | 9,600 | NA |
| Standard Deduction | 50,000 | 75,000 |
| Professional Tax | 2,400 | NA |
| Taxable Salary Income | 45,28,000 | 49,25,000 |
| Deductions | ||
| 80C | 1,50,000 | NA |
| 80D | 50,000 | NA |
| 80E | 25,000 | NA |
| Net Taxable Income | 43,03,000 | 49,25,000 |
| Taxes on the above income | 11,03,400 | 11,67,500 |
| Rebate u/s 87 A | NA | NA |
| Total Tax (including the 4% cess) | 11,47,536 | 10,99,800 |
Through this, you can get the rough idea of your new income tax calculations. By opting for the new tax regime, the taxpayer will be able to save Rs 47,736 in their taxes within the financial year 2025-26.
Various Tax Saving Options on a 50 LPA Salary
When an individual starts earning a 50 LPA in hand salary, a big portion of his/her salary goes in taxes. But with some smart tax-saving options, you can save a good amount of your salary legally and enjoy the various benefits. Some of the tax-saving options on a 50 LPA Salary are as follows:
- Under Section 80C, you can claim up to Rs 1.5 lakhs by investing your money in various things, such as ELSS Mutual Funds, PPF (Public Provident Fund), EPF (Employees Provident Fund), or by paying life insurance premiums.
- Then comes the section 80D. In this section, you can save on taxes by paying the health insurance premiums for yourself or your family members.
- If you are living in a rented house, you can also save taxes by paying the House Rent Allowance (HRA). It will reduce your taxable income significantly.
- For those employees who are thinking of a long-term investment, the National Pension Scheme (NPS) under Section 80CCD 1(B) gives an extra benefit of Rs 50,000.
- Proper and valid Meal coupons, Leave Travel Allowance, and various types of educational allowances are small but very useful ways to save on taxes.
With the proper planning and investment, an individual can reduce their tax outgo by a few lakhs per year. You just have to mix investments, insurance plans, and your allowances smartly.
How to Manage your 50 LPA Salary Smartly
- Don’t expand your Lifestyle so fast: Earning a 50 LPA salary is a good thing. But that doesn’t mean that you are buying a new car or unnecessary things every year. Keep your lifestyle slower according to your salary growth.
- Make more investments: By earning 50 LPA every year, you can invest your money more easily. Make more investments in equity, mutual funds, or even the International stock market. Aim to invest at least 30-40% of your in-hand salary in the above things.
- Emergency Fund: Keep at least 6-12 months of expenses in a liquid fund. Your higher salary package doesn’t mean that you are permanent in your job. You may face a job loss anytime, and at that time, these funds are helpful.
- Make a Retirement Plan: The earlier you start planning for your retirement, the better. With NPS, EPF, and personal investments, you can secure financial independence well before 60.
Current and Frequently Looked-For LPA Pay in 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 |
FAQS:
1) What is your in-hand salary for 50 LPA?
In-hand salary of an individual in 50 LPA is estimated between Rs 2.7 lakhs to Rs 3.2 lakhs per month after all the deductions.
2) How much tax do I have to pay for a 50 lakh salary?
An employee must pay about 30% tax as per the new tax regime for a 50 lakh salary package.
3) How to pay zero tax on a 50 lakh salary package?
You can invest your money in various insurance premiums, mutual fund plans, and invest your money in educational loans. Through these ways, you have to pay a minimum tax on a 50 lakh salary package.