If you are applying for a job, one of the major questions that hits your mind is “how much will I get in 4 LPA in hand salary”. Indian salary structure includes various components, including Basic Pay, HRA, PF, Professional Tax, TDS, etc. Your in-hand salary is usually lower than your CTC because of these deductions.
In this article, we will clarify your doubt about 4 LPA salary and calculations. You will learn the tax deductions, allowances, and take-home salary.
What Does 4 LPA Mean?
4 LPA means Rs. 4,00,000 per year salary. The CTC format includes a fixed monthly salary. Employee Provident Fund, Employer Provident Fund, Gratuity, Performance Bonuses, Insurance, and many other perks are offered by the companies. However, the amount you receive in your hand is less than 4 lakhs due to PF, taxes, and other deductions.
Typical Salary Structure for 4 LPA
Companies follow different salary structures, but most of the components remain the same. The typical salary structure for a 4 lpa in hand salary is mentioned below:
| Component | Approx. Amount (Annual) | Monthly |
| Basic Salary | ₹1,80,000 | ₹15,000 |
| House Rent Allowance (HRA) | ₹90,000 | ₹7,500 |
| Conveyance Allowance | ₹19,200 | ₹1,600 |
| Special Allowance | ₹1,00,800 | ₹8,400 |
| Gross Salary | ₹3,90,000 | ₹32,500 |
| PF (Employer + Employee) | ₹21,600 | ₹1,800 |
| Gratuity | ₹8,400 | — |
| CTC | ₹4,20,000 | — |
Monthly Deductions from 4 LPA salary
There are some deductions applicable to a 4 lpa in hand salary as mentioned below:
| Deduction | Amount (₹) |
| Employee PF (12% of Basic) | 1,800 |
| Professional Tax (varies by state) | 200 |
| Income Tax (after new regime) | 0–400 |
| Other Deductions (if any) | 0–300 |
| Total Deductions | 2,000 – 2,700 |
PF Deduction for 4 LPA
Provident fund deduction is mandatory for salaried employees, unless the company allows an opt-out facility. The Employee PF is deducted at 12% of the basic salary. Employer PF Deduction of 12% is also added, but it is not part of the hand salary.
For example, if your basic salary is %s. 15,000 monthly. Your EFP will be deducted Rs. 1800 per month (12% of 15000). The Annual EPF will be Rs. 21600.
Professional Tax (PT)
There are some states that apply the professional tax to the salaries, such as Karnataka, Maharashtra, Tamil Nadu, West Bengal, Andhra Pradesh, Telangana, Gujarat, Meghalaya, etc. The Professional Tax is deducted at Rs. 200 per month. It differs according to state. Your PT deduction will be 0 if you live in a state with no professional tax deductions.
Income Tax Deduction on 4 LPA (New Tax Regime)
For freshers and new investments, the most commonly used tax system is the New Tax Regime. Here are the complete details of the 4 LPA in-hand salary for the New Regime:
| Category | Details | Amount (₹) |
| Gross Annual Salary | — | 4,00,000 |
| Standard Deduction | Fixed deduction for salaried employees | 50,000 |
| Taxable Income | 4,00,000 – 50,000 | 3,50,000 |
| Tax Slab 1 | 0 – 3,00,000 @ 0% | 0 tax |
| Tax Slab 2 | 50,000 (from 3,00,001 to 3,50,000) @ 5% | 2,500 |
| Income Tax (Before Cess) | Based on slabs | 2,500 |
| 4% Health & Education Cess | 4% of 2,500 | 100 |
| Total Annual Tax Payable | Income Tax + Cess | 2,600 |
| Monthly TDS Deduction | 2,600 ÷ 12 | 217 |
Monthly In-Hand Salary from 4 LPA
The monthly In-Hand salary from a 4 LPA after all the deductions is mentioned below:
| Component | Amount (₹) |
| Gross Monthly Salary | 32,500 |
| (-) PF Deduction | 1,800 |
| (-) Professional Tax (PT) | 200 |
| (-) TDS (Income Tax) | 217 |
| Total Monthly Deductions | 2,217 |
| Net In-Hand Monthly Salary | 30,283 |
Yearly In-Hand Salary at 4 LPA
Here is the complete breakdown of the annual in-hand salary from a 4 lpa in hand salary after deductions:
| Category | Amount (₹) |
| Annual CTC | 4,00,000 |
| Annual Deductions | 30,000 – 35,000 |
| Annual In-Hand | 3,60,000 – 3,70,000 |
How to Increase Your In-Hand Salary at 4 LPA?
With fixed CTC, you can adopt various ways to increase your take-home salary legally:
- Invest under Section 80C
Some investments can help you claim Rs. 1,50,000 deductions. You can claim PPF, ELSS mutual funds, IC, Employee PF, etc. It can reduce your tax to zero, which will increase your in-hand salary up to Rs. 217 per month.
- Use the new tax regime if you have no investments.
If you have not invested in any tax-saving product, you can utilize the new tax regime to reduce tax for low-income individuals.
- Claim HRA exemption (if living on rent)
If you are living in a metro city and paying house rent, you can claim HRA exemptions.
- Reduce voluntary PF
Many companies provide you with the option for a low voluntary PF deduction. It increases your in-hand salary.
- Ask the company to increase the special allowance.
During the joining or appraisal, you can request the company to adjust structures. It will help you get more in-hand salary.
Conclusion
On average, 4 lpa in hand salary packages provide you a Gross Monthly Salary of Rs. 33,333. However, the in-hand salary ranges from Rs. 27,000 to Rs. 30,800. This is the amount received after PF, PT, and TDS deductions. The Grade pay is also a part of “In-Hand Salary”. The in-hand salary can change depending on your company’s structures, deductions, and location-based taxes.
FAQs
Q1)What is a 4 LPA in-hand salary?
The 4 LPA CTC provides you with Rs. 29,500 to Rs. 30,500 in-hand salary after all the deductions such as PF, income tax, and PT deductions.
Q2)How much is deducted for PF from an LPA salary?
The PF deduction is Rs. 1800 monthly (12% of Rs. 15000 basic salary). Rs. 1800 will be deducted from the employee’s salary, and the employer will also contribute separately. It will be part of CTC but not in-hand salary.
Q3)Is the income tax applied to a 4 lpa in hand salary?
Yes, the income tax is applicable on 4 LPA, but it is minimal. For the new tax regime, Rs. 50,000 is the standard deduction, and only Rs. 3.5 lakh is taxable. The total tax amount comes to Rs. 2600 per year.
Q4)How can I increase my in-hand salary for a 4 LPA CTC?
Investment under section 80C, claiming HRA and PF deductions, can allow you to increase your take-home salary.
Q5)If I have 4 LPA CTC, but who is the in-hand salary low?
CTC includes many components that you don’t receive directly, such as employer PF, gratuity, insurance, and annual bonuses. The in-hand salary is calculated after all deductions.