Getting a 7 LPA job offer is a great opportunity to start your career. If you are calculating your 7 LPA in-hand salary as 7/12, it’s wrong. The in-hand salary is less than 7/12. You must know how much per month you will get in- hand from the 7lpa how much per month. Your actual salary includes some deductions and taxes, which makes your in-hand salary less. Here, we will learn the details of 7 LPA how much per month you will get in your account.
What is a 7 LPA Salary?
LPA means Lakhs per Annum. It is your total annual salary before any deductions. Many Indian companies mention CTC (Cost to company), not the monthly in-hand salary. CTC means the cost of an employer spending on you per year. The cost – to – company includes basic salary, house rent allowance, special allowance, PF, insurance, etc.
These components include the overall package, but are not paid for fully monthly. In simple words, a 7lpa how much per month does not mean you will get Rs. 7 lakh in your account annually; the in-hand amount will be calculated after deductions.
Basic Calculations of 7 LPA Per Month
With the basic calculations, you will get Rs. 58,333 as the gross salary. You can calculate a 7 LPA salary as mentioned below:
| Salary Basis | Amount |
| Annual Salary | ₹7,00,000 |
| Gross Monthly Salary | ₹58,333 |
| Weekly Salary (Approx.) | ₹13,460 |
| Daily Salary (Approx.) | ₹1,940 |
How Companies Structure a 7 LPA Salary?
Many companies divide salary into different components rather than paying a single fixed amount. Here is the usual salary structure for 7 LPA:
| Salary Component | Approx. Monthly Amount |
| Basic Salary | ₹23,000 – ₹29,000 |
| House Rent Allowance (HRA) | ₹10,000 – ₹14,000 |
| Special / Performance Allowance | ₹8,000 – ₹12,000 |
| Conveyance & Other Allowances | ₹3,000 – ₹5,000 |
| Employer PF Contribution | ₹2,500 – ₹3,000 |
| Gross Salary | ₹58,333 |
Read Also: 4 LPA in hand salary | 30 Lpa in Hand Salary
Why Your In-Hand Salary Lower?
The in-hand salary you get is always lower than your gross salary because of various deductions. These deductions provide long-term savings and tax compliance. You might find the deductions as a reduction in cash flow monthly, but they are financial security nets in actuality. Here are the common monthly deductions for a 7lpa how much per month :
| Common Deductions | Monthly Amount |
| Employee PF Contribution | ₹2,500 – ₹3,000 |
| Professional Tax | ₹200 – ₹250 |
| Income Tax (TDS) | ₹2,000 – ₹4,000 |
| Insurance / Other Deductions | ₹300 – ₹800 |
| Total Deductions | ₹5,000 – ₹8,000 |
7 LPA In-Hand Salary Per Month
Your monthly in hand salary from 7lpa how much per month will be as mentioned below:
| Salary Type | Amount |
| Gross Monthly Salary | ₹58,333 |
| Total Deductions | ₹5,000 – ₹8,000 |
| In-Hand Salary | ₹50,000 – ₹53,000 |
Income Tax Impact on 7 LPA Salary
Income tax is a vital component of your salary, and you must know how much tax will be deducted each month from your 7lpa how much per month for tax. The amount you get in hand depends on the tax regime you choose.
The old tax regime allows you to claim deductions and reduce your taxable income. You can invest in LIC, PF, ELSS and claim deductions. HRA deduction is also applied if you live in a rented house. Make sure to utilize the deductions smartly to rescue your tax burden, which will lead to lower monthly income tax deductions and increase your in-hand salary.
For the new tax regime, you will get lower tax rates, but it does not allow you to claim deductions or exemptions. It is simple and requires less paperwork. The new tax regime can lead to less savings for the people who prefer to invest regularly and claim tax benefits under the old regime.
How to Maximise Your Salary on 7 LPA?
There are various ways that you can implement to increase your in-hand salary from 7 LPA. Let’s discuss them one by one:
- Choose the tax regime smartly
You must carefully compare old and new tax regimes depending on your investment and deductions. Choose the one that offers you a higher in-hand salary and good savings.
- Claim HRA and deductions properly
Living in a rented house can help you claim HRA and eligible deductions under Section 80C. It will reduce your taxable income and increase your in-hand amount.
- Reduce overspending
You must work on reducing your unnecessary expenses. Cut down expenses on frequent dine-outs or unnecessary purchases. It will improve your monthly savings.
- Build the emergency fund
You must make sure to keep aside 3-6 months of expenses in your savings account. It will help you in times of emergency, such as medical issues, unexpected financial situations, etc.
- Invest for long-term goals
Invest in Mutual Funds, PPF, or NPS to fulfill your long-term goals. You can also plan for after retirement.
- Smart financial planning
Good budgeting and disciplined savings can provide you with better financial stability with a 7 LPA.
Conclusion
The above article mentioned “7lpa how much per month how much money per month you receive in your account”. Typically, you get Rs. 50,000 to Rs. 53,000 monthly in-hand salary from 7 LPA packages after deductions. The huge difference between your CTC and take-home salary is because of various deductions. To get the most benefits out of your 7 LPA package, you must carefully plan your expenses and investments.
FAQs
Q1)How much in hand will I get from the 7 LPA salary monthly?
The in-hand salary at 7 LPA ranges from Rs. 50,000 to Rs. 53,000 monthly. It depends on your tax regime, PF contribution, and other deductions.
Q2)Is 7 LPA a good salary to live a well-balanced life?
Yes, 7 LPA is a good mid-level salary in India. If you are living in tier 2 and tier 3 cities, you will easily lead a good lifestyle. 7 LPA provides a comfortable lifestyle in metro cities.
Q3)Will I get Rs. 58,333 in-hand per month from a 7 LPA salary?
No, Rs. 58,333 is not the in-hand salary; it is the gross salary. Your actual amount will be lower depending on your PF, income tax, and insurance.
Q4)Which tax regime is good for 7 LPA?
People usually prefer the old tax regime for 7 LPA because they invest and claim deductions such as HRA and section 80C.
Q5)Is it possible to save enough money on a 7 LPA?
Yes, you can easily save enough money on a 7 LPA with proper budgeting and controlled expenses. It will allow you to save Rs. 10,000 to Rs. Rs. 15,000 monthly.
Read Also: 2.5 LPA in hand salary
