Do you know the salary figure printed on your offer letter is not the same as what lands in your bank account? The money you actually receive is lower than your CTC. Getting a 14 LPA package is a great achievement, but you must note that your monthly salary is not Rs. 116,666. 14 LPA is your CTC, and the monthly take-home salary provided after all the deductions such as PF, professional tax, etc. If you understand the 14 LPA salary structure, you will be able to make your budget effectively.
In this article, we will learn more about 14 lpa in hand salary meanings, calculations, monthly and annual take-home salary, and ways to plan your salary effectively.
What Does “14 LPA” Mean?
14 LPA means Rs. 14,00,000 per year. It is your CTC, which means the cost that the company bears for you in a year. It includes various components that are not paid in cash, as well as the take-home amount. Your 14 lpa in hand salary is the remaining amount after all deductions.
Typical Salary Structure for 14 LPA
14 LPA salary structure varies as per company policies, but some components remain the same. Here is a common structure for a 14 LPA salary:
| Component | Yearly (Approx) | Monthly (Approx) |
| Basic Salary | ₹5,60,000 | ₹46,666 |
| HRA (House Rent Allowance) | ₹2,24,000 | ₹18,666 |
| Special Allowance | ₹3,56,000 | ₹29,666 |
| Employer PF Contribution | ₹67,200 | ₹5,600 |
| Gratuity Contribution | ₹26,880 | ₹2,240 |
| Performance/Variable Pay | ₹1,36,000 | (paid yearly) |
| Total CTC | ₹14,00,000 | — |
Deductions That Reduce Your Take-Home Salary
Your monthly in-hand salary is provided after deducting statutory obligations and taxes. The summon deductions include:
- Employee Provident Fund (PF)
The companies deduct 12% of your basic pay for PF. It reduces your monthly take-home salary but creates a long-term retirement corpus for you. For example, the PF of Rs. 5,600 per month is deducted from the 14 LPA.
- Professional tax
The professional tax is applied by some states in India. The amount deducted for professional tax is approximately Rs. 200 per month.
- Income tax (TDS)
Income tax is deducted every month from your salary based on your chosen tax slab. Many people prefer the new tax regime because of its simplified and fewer exemptions.
Income Tax Calculation for 14 LPA (New Tax Regime)
If you are choosing a new tax regime, your 14 lpa in hand salary income tax calculations will be as follows:
| Particulars | Amount |
| Gross Salary | ₹14,00,000 |
| Standard Deduction | -₹50,000 |
| Employer PF (Not taxable) | -₹67,200 |
| Taxable Income | ₹12,82,800 |
Tax slab computation:
- 0–3 L: ₹0
- 3–6 L: 5% = ₹15,000
- 6–9 L: 10% = ₹30,000
- 9–12 L: 15% = ₹45,000
- 12–12.82 L: 20% = ₹16,560
Total tax = Rs. 1,06,560+ Rs. 4,262 (4% cess) = Rs. 1,10,822 per year
Approximately Rs. 9,235 will be deducted per month as TDS.
14 in Hand Salary per month
Here is the calculation for your 14 lpa in hand salary:
| Breakup | Monthly Amount |
| Gross Monthly Salary | ₹91,666 |
| PF Deduction | -₹5,600 |
| Professional Tax | -₹200 |
| Monthly TDS | -₹9,235 |
| Monthly In-Hand Salary | ₹76,631 (Approx) |
So, your monthly in-hand salary will range from Rs. 76,000 to Rs. 79,000 as per your salary structure, tax regime, and allowances.
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14 in Hand Salary per Year
Your annual in-hand salary from 14 lpa in hand salary will be Rs. 9.5 lakh to Rs. 10 lakh. The approximate structure is:
| Particular | Amount |
| Total CTC | ₹14,00,000 |
| Bonus (Tax Applied) | ₹95,000 (approx received) |
| Yearly Deductions (PF + Tax + PT) | ₹2,34,000 approx |
| Yearly In-Hand Salary | ₹9,61,000 approx |
Is 14 LPA a Good Salary in India?
Yes, 14 lpa in hand salary is a good package in India and is counted under the top earning category. The experienced professionals from IT, finance & consulting, engineering, and Data & analytics receive 14 LPA. It allows you to live a comfortable lifestyle in Tier 1 and Tier 2 cities. You can save for your future. With 14 LPA, you can get a rented house in a good location. With smart budgeting strategies, you can easily build a long-term financial foundation.
Factors That Affect 14 LPA In-Hand Salary
You can find differences in the take-home salaries of two employees with the same 14 lpa in hand salary. It is because of various factors such as:
- Tax regime
The tax regime you choose plays a vital role in deciding your taxable income and deductions.
- Investments
If you invest in tax-saving instruments such as PPF, ELSS, or claim HRA, your tax can be reduced as per the old tax regime.
- Location
Living in metro cities leads to high living costs and affects your HRA. A higher HRA will increase your in-hand pay.
- PF and Voluntary PF
Many employees prefer to reduce or increase their PF contribution, which directly affects their retirement savings, and take some amount.
How to Improve 14 LPA in-hand Salary?
There are various ways to increase your 14 lpa in hand salary, as mentioned below. These tips can help you increase your in-hand monthly salary by Rs. 5,000 to Rs. 10,000
- Choose the correct tax regime as per your investment habits.
- Try to reduce PF contribution, if your company gives an option.
- Claim HRA tax exemption by submitting a rent slip.
- Increase section 80C deductions
- Health insurance premiums under 80D.
Conclusion
Knowing the 14 LPA in-hand salary will help you know how much you will get monthly. It will help you plan your finances realistically. The 14 LPA CTC is impressive, but your take-home amount will be lower because of deductions and salary structure. You can receive Rs. 76,000 to Rs. 79,000 monthly as 14 LPA in hand salary.
FAQs
Q1)What is 14 LPA in hand salary per month?
The 14 LPA in-hand salary per month ranges from Rs. 76,000 to Rs. 79,000. It depends on your salary structure and deductions.
Q2)Can I live a good lifestyle with a 14 LPA package?
Yes, a 14 LPA package is considered a good income. You can live a comfortable lifestyle in Tier 1 and Tier 2 cities.
Q3)What will be the tax amount deducted from 14 LPA?
The tax amount of Rs. 1 lakh per year can be deducted from your 14 LPA under the new tax regime.
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