Through money, you can have everything in your life. It is the biggest motivator in our career journey. Just think you have landed in your dream job with a 14 LPA in hand salary package, and you already start calculating how you will spend that money. But wait, before you start planning your luxury lifestyle, let’s talk about what your actual in-hand salary is in the 14 LPA salary structure. The actual journey from your gross salary to the net pay feels like solving a complex puzzle. On one side, you are planning for your luxury lifestyle, and on the other side, you are staring at the tax deductions that seem to eat up almost half of your salary. Don’t worry, we are here. In this blog, we will break down everything you need to know about the 14 LPA in hand salary, from its tax implications to the monthly calculations that help you in making better financial decisions.
What Does 14 LPA in Hand Salary Actually Mean?
Your 14 LPA in hand salary stands for the 14 lakhs per annum, basically representing your total compensation package. However, the full amount doesn’t land in your bank accounts every month. Just think about the CTC as the total cost your employer bears to keep you on the same payroll.
The table below will show you some of the components of the CTC with their annual range and the monthly equivalent:
| Components of CTC | Annual Range | Monthly Equivalent |
| Basic Salary | Rs 6 lakhs to 7 lakhs | Rs 50,000 to 58,333 |
| HRA | Rs 2,40,000 to 2,80,000 | Rs 20,000 to Rs 23,333 |
| Special Allowance | Rs 3,00,000 to 4,00,000 | Rs 25,000 to Rs 33,333 |
| Provident Fund Contribution | Rs 21,600 to Rs 25,200 | Rs 1,800 to Rs 2,100 |
| Gratuity | Rs 28,000 to 32,000 | Rs 2,333 to Rs 2,667 |
14 Lpa in Hand Salary Calculation According to the New Vs Old Tax Regime
In this section of the blog, we will discuss how much money you will get in your bank accounts for the 14 LPA in hand salary, according to the old and new tax regimes:
1) Old Tax Regime
| Components | Annual Amount | Monthly Amount |
| Gross Salary | Rs 14,00,000 | Rs 1,16, 667 |
| Standard Deduction | Rs 50,000 | —— |
| PF Employee Share | Rs 21,600 | Rs 1,800 |
| Professional Tax | Rs 2,400 | Rs 200 |
| Income Tax | Rs 1,95,000 | Rs 16,250 |
| Net in-hand Salary | Rs 11,31,000 | Rs 94,250 |
2) New Tax Regime
| Components | Annual Amount | Monthly Amount |
| Gross Salary | Rs 14,00,000 | Rs 1,16,667 |
| PF Employee Share | Rs 21,600 | Rs 1,800 |
| Professional Tax | Rs 2,400 | Rs 200 |
| Income Tax | Rs 1,50,000 | Rs 12,500 |
| Net in-hand Salary | Rs 11,76,000 | Rs 98,000 |
Monthly Breakdown of the 14 LPA in Hand Salary
Understanding the monthly breakdown of the 14 LPA in hand Salary helps you in better financial planning of your future. Below is a table indicating your monthly in-hand salary in the 14 LPA salary package:
| Components | Amount | Percentage of Gross Amount |
| Gross Monthly | 1,16,667 | 100% |
| PF Deduction | 1,800 | 1.5% |
| Professional Tax | 200 | 0.2% |
| Income Tax | 12,500-16,250 | 10.7-13.9% |
| Net in-hand salary | 96,000-98,000 | 82-84% |
So, an individual will get approximately 96,000 to 98,000 in-hand salary in their bank accounts. But please keep in mind that it may differ according to the company’s bonuses, incentives, and terms and conditions.
Hidden Costs and Various Additional Benefits
| Item | Monthly typical Cost | Impact on your in-hand salary |
| Health Insurance Premium | Rs 500 to Rs 2,000 | Health Insurance will reduce your taxable income. |
| Various Meal vouchers | Rs 2,200 | Meal vouchers are tax-free up to the limit mentioned |
| Transport Allowances | Rs 1,600 | You can enjoy tax-free benefits through the transport allowances. |
| Mobile/Internet Reimbursement | Rs 1,000 to 3,000 | Your Mobile or Internet Reimbursement will reduce your tax burden. |
Various Factors That Affect Your In-Hand Salary
The exact amount you receive can vary depending on:
- Tax Regime Choice– The new tax regime has lower rates but fewer exemptions, while the old regime allows tax-saving investments. Depending on your investments (like PF, ELSS, NPS, insurance), your taxable income may be reduced.
- HRA Exemption– If you live in a rented house and pay rent, you can claim the HRA exemption, which reduces taxable income.
- Location of Work– Metro cities usually have higher HRA, while non-metro postings may reduce it.
- Variable Pay / Bonus– Some companies include a variable bonus in the CTC, which may not be fully paid each year. This can affect your actual in-hand salary.
- Company Policies– Some companies offer higher PF contributions, meal vouchers, stock options (ESOPs), or medical benefits. These add to your CTC but don’t show up in your monthly bank statement.
Is 14 Lpa a Good Salary in India?
14 LPA in hand salary is good or not, it depends on your livelihood and your basic or luxury needs. Below is a comparison between the tier 1 and tier 2 cities, so that you can better understand whether your salary package is good for you or not:
Tier 1: Metro Cities (Bengaluru, Delhi, Mumbai, Hyderabad)
In the metro cities, a Rs 96,000 to 98,000 in-hand salary per month is comfortable. But it’s not an extremely good salary due to the high rent and the high living costs of the people. For example, rent in Mumbai and Bengaluru starts from Rs 25,000 to 40,000 per month.
TIER 2 Cities: (Pune, Jaipur, Ahmedabad, and Chandigarh)
In cities like Pune, Jaipur, Chandigarh, and Ahmedabad, a 14 LPA salary is considered more than enough because of the lower living costs of the people. In these cities, you can save more money.
For Freshers or Young Professionals
For the freshers and the young professionals 14 LPA Salary structure is above the entry-level salary package. For professionals working in any field, such as IT, Management, or the consulting sector, it may take years to reach this level of salary package.
How to Save More on a 14 LPA Salary Structure?
If you are earning 14 LPA, then you should focus more on wealth building and the tax-saving options. Here are a few more smart tips to save your money:
- You can invest your money in the EPF, PPF, ELSS, or any life insurance plan under Section 80 CCD. You can get up to Rs 1.5 lakh tax deduction from your salary package.
- An individual can buy health insurance premiums. By doing this, they will get extra tax benefits under Section 80D.
- Employees also invest their money in the National Pension Scheme. Through this scheme, they will get an extra tax deduction of Rs 50,000 under section 80CCD(1B).
- If an employee lives in a rented house, then they can claim an HRA exemption. Through this, they can get extra benefits for money-saving options.
- An individual can also invest their money in mutual funds, various SIPs, or index funds to grow wealth.
Through these smarter ways, you can reduce your annual tax liability by Rs 50,000 to Rs 80,000.
Top 5 Calculation Errors to be Avoided
Below are some of the calculation errors to be avoided while having a 14 LPA salary Structure:
| Common Mistakes | Penalty Amount | Correction |
| Ignoring your Professional tax | -Rs 200 per month | Always include this point in your calculations |
| Choosing the Wrong Tax Regime | -₹3,000-4,000/month | Compare both regimes annually |
| Overlooking your variable pay | Inaccurate expectations | Factor in 85-90%payout |
| By chance, forget your PF employer contribution | Undervaluing total compensation | Consider it as your retirement benefit plan |
| Not planning for your tax optimization | -₹2,000-5,000/month | Invest it strategically |
Current and Frequently Looked-For LPA Pay
| 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 of the 14 LPA Salary Package?
An individual can earn 96,000 to 98,000 in-hand salary every month from the 14 LPA salary package.
2) Is 14 LPA a Good Package?
14 LPA is a good salary package for an individual or not, it depends on his/her livelihood and the location in which they are living.
3) What Are the Various Factors That Affect Your In-Hand Salary?
Tax Regime Choice, HRA Exemption, Location of your Workplace, Variable pay, and the company policies are some of the factors that affect your in-hand salary.
4) How Can an Individual Save Taxes in a 14 LPA Salary Structure?
You can invest your money in various health and life insurance plans, by investing your money in the NPS Scheme, and through investing in the Mutual Funds & monthly SIPs.
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