A significant professional milestone for anyone is earning 17.5 LPA (Lakhs Per Annum), particularly for those in engineering, consulting, finance, or information technology. It’s a gratifying moment, but as many professionals quickly discover, the figure you see in your offer letter—your CTC, or Cost to Company—doesn’t match the amount that appears in your bank account each month.

The total take-home pay is decreased by several required deductions, such as income tax, professional tax, Employee Provident Fund (EPF) payments, and, in certain situations, gratuities or insurance premiums.

The real amount you get in hand from a 17.5 LPA package after standard deductions in 2025 will be broken down in this post.

In addition to your pay, CTC covers extra perks including bonuses, medical insurance, gratuities, and your employer’s EPF contribution.

It’s critical to realize that CTC is not your actual pay.

Components of a Typical 17.5 LPA CTC

The construction of a standard 17.5 LPA package may look like this:

Major Deductions Before In-Hand Salary

Provident Fund for Employees (EPF)

• For EPF, 12% of base pay is withheld.
• 12% of ₹7,00,000 for 17.5 LPA equals ₹84,000 a year (₹7,000 per month).

Professional Taxation (PT)

• Varies depending on the state.
• Typically, most states pay ₹200 a month, or ₹2,400 a year.

Tax on Income

• Based on either the previous tax system (which included exemptions like HRA, 80C, etc.) or the new tax system (which has no exemptions).
• Soon, we’ll compute taxes in both directions.

Premiums for insurance (if any)

• Some businesses deduct a minimal premium (optional) for group insurance coverage.
• Suppose a monthly deduction of ₹500 to ₹1000, if any.

Income Tax Calculation for 17.5 LPA

Let’s break it down under both regimes:

1. New Tax Regime (2025 Updated Slabs)

₹15,000 + ₹30,000 + ₹45,000 + ₹60,000 + ₹75,000 = ₹2,25,000 is the total tax.

• Add 4% for education and health. Cess: ₹9,000 (4% of ₹2,25,000)

Total Tax Due: ₹2,34,000 per year (around ₹19,500 per month)

2. Old Tax Regime (With exemptions)

When you use:

• The deduction under 80C (PF, insurance, etc.) is ₹1.5 lakh.
• Human Rights Act exemption
• 50,000 naira standard deduction
• Aside from NPS, other deductions include 80D (health insurance).

You may see a drop in your taxable income to about ₹13 lakh.

Applying rates from the previous regime:

• 13 lakh rupees in taxes plus 4% cess equals 1,71,600 rupees.

The total tax liability (excluding exemptions) is ₹1,71,600 per year, or around ₹14,300 per month.

Other Monthly Deductions Estimate

Final In-Hand Salary Calculation

Without Exemptions (New Regime)

Estimated In-Hand Salary: ₹1,01,000 – ₹1,02,000 per month.

With Exemptions (Old Regime)

Estimated In-Hand Salary: ₹1,06,000 – ₹1,07,000 per month.

Tips to Increase In-Hand Salary

• Attempt to save tax: Split the special allowance into reimbursements (telephone, internet, fuel) in Salary Breakups.
• Invest ₹ 1.5 lakh in ELSS, PPF, PF, etc.
• For NPS (80CCD (1B)), get an additional ₹50,000 exemption.
• HRA exemption is used smartly: If you live in a rented house, then HRA exemption uses the rent receipts for
• Known as a Wise Choice: Depending on your deductions, the old regime may give you higher in-hand pay.

Conclusion

Many jobs in Dubai offer an extremely attractive 17.5 LPA salary — and it is indeed quite good — but one must be aware of taxes, provident fund contributions, and other deductions that may be incurred. Now you should have to be prepared to get ₹1.01 lakh to ₹1.07 lakh worth of salary in your hand, after all the planning smartly regarding taxes.

One can understand his/her salary structure better and make the most of the tax savings, and with a better-in-hand salary he/they can plan his/her finances.

FAQ’s 

How much does a 17.5 LPA salary mean?

Therefore, your Cost to Company (CTC) is ₹17,50,000 per year and a 17.5 LPA salary. This amount is of your basic salary, HRA, special allowances, the employer’s contribution to Provident Fund (PF), gratuity, bonuses, and other benefits.

Will the entire amount of 17.5 LPA be credited into my bank account?

When it comes to in-hand, you do not get 17.5 LPA, that’s a total figure, and you don’t see the full 17.5 LPA as in-hand, salary. These deductions include income tax, employee’s PF contribution, professional tax, and insurance premiums, which reduce your monthly take-home amount.

What is the expected monthly salary that I can get with 17.5 LPA?

However, after all deductions, your in-hand salary will be somewhere around ₹1,01,000 – ₹1,07,000 per month based on your choice of tax regime and the deduction you claim.

My major deductions from my salary are what?

The deductions from your salary are:

• Income Tax
• Employee Provident Fund (EPF) (12% of basic salary)
• Around ₹200 per month, depending on your state, Professional Tax (PT).
• Insurance Premiums (if applicable)

What will the income tax amount be on a 17.5 LPA salary?

• The taxes you will pay under this regime will approximately come to ₹2.34 lakh per year.
• If you lived under the old tax regime (with exemptions), your tax liability could touch about ₹1.71 lakh per year.