A majority of Indian professionals working in software, consulting, and financial industries wish to receive an offer with a salary of 24 lakh per year. What’s truly important is the net pay you receive every month, despite a great-looking gross income.
In this post, you’ll see what a 24 LPA CTC means in India and learn about the impact of mid-salary cuts, EPF, income tax, and similar deductions on your actual monthly paycheck.
What Is CTC and Why the In-Hand Salary lower?
The total salary a company gives to an employee in a year is referred to as the CTC (Cost to Company).
This includes:
Base salary
House Rent Allowance, or HRA
Additional allowances
Extras
Payments made by the employer to the EPF
Gratuity
Health insurance
Performance bonuses (if applicable)
But not all parts of the CTC are paid out on a monthly basis. Many benefits are non-cash or are deducted from pay, reducing the in-hand pay.
24 LPA CTC – Salary Structure Assumption
Let’s simplify by assuming a typical pay scale that businesses frequently employ for a 24 LPA package:
| Component | Amount (₹ per annum) |
| Basic Salary | ₹9,60,000 |
| HRA | ₹4,80,000 |
| Special Allowance | ₹6,00,000 |
| Provident Fund (Employer) | ₹1,15,200 |
| Gratuity | ₹46,152 |
| Performance Bonus (variable) | ₹2,00,000 |
| Total CTC | ₹24,01,352 (rounded off to 24 LPA) |
Monthly Salary Before Deductions
Let’s examine the fixed portion of the CTC and exclude one-time elements like performance bonuses:
₹24,000,000 – ₹2,00,000 (bonus) = ₹22,000,000 for fixed annual pay.
₹22,00,000 ÷ 12 = ₹1,83,333 Monthly fixed
Let’s now dissect this and apply all of the deductions.
Deductions Explained
Fund for Employee Providents (EPF)
Employees pay 12% of Basic Pay:
12% of 9,60,000 ₹ = 1,15,200 ₹ annually
₹9,600 is the monthly deduction.
Even when the employer pays the same, it is not added to in-hand wage.
Gratuity Contribution (Non-Monthly)
4.81% of Basic = ₹46,152 annually
Although not included in the monthly payout, it is a component of CTC.
Every month, ~₹3,846 is not received.
Professional Tax, if relevant
varies by state, with Maharashtra and Karnataka often paying ₹200 per month.
Let’s suppose ₹200 per month.
TDS, or income tax deduction
The greatest deduction is income tax. Since many businesses now default to this, let’s compute the yearly tax on ₹22,000,000 (fixed pay) under the new tax regime.
Income Tax Calculation for FY 2024–25 (New Regime)
New Tax Regime slabs:
| Income Range | Tax Rate |
| 0 – 3L | 0% |
| 3 – 6L | 5% |
| 6 – 9L | 10% |
| 9 – 12L | 15% |
| 12 – 15L | 20% |
| 15L+ | 30% |
Tax on ₹22,00,000 (excluding bonus)
- 0 – 3L → 0% = ₹0
- 3 – 6L → 5% of 3L = ₹15,000
- 6 – 9L → 10% of 3L = ₹30,000
- 9 – 12L → 15% of 3L = ₹45,000
- 12 – 15L → 20% of 3L = ₹60,000
- 15L – 22L → 30% of 7L = ₹2,10,000
Total Tax Before Cess = ₹3,60,000
Cess @ 4% = ₹14,400
Total Tax = ₹3,74,400/year
Monthly = ₹31,200
Total Monthly Deductions
| Deduction Type | Amount (₹) |
| Employee PF | ₹9,600 |
| Income Tax (TDS) | ₹31,200 |
| Professional Tax | ₹200 |
| Total | ₹41,000 approx |
Final Monthly In-Hand Salary
Fixed: ₹1,83,333 per month
Less deductions equal ₹41,000, and the monthly salary in hand is ₹1,42,333.
In those months, your in-hand might rise dramatically if the incentive is given quarterly or yearly.
Annual In-Hand Salary
| Description | Amount |
| Monthly In-Hand | ₹1,42,333 |
| Annual Fixed In-Hand | ₹1,42,333 × 12 = ₹17,08,000 approx |
| Bonus (variable) | + ₹2,00,000 (if paid in full) |
| Total Yearly In-Hand | ~₹19,08,000 |
Impact of HRA and Tax Benefits (Old Regime)
If you want to use the previous tax system and reside in a rental home, you are eligible to:
- HRA exemption
- Section 80C deductions (such as LIC, ELSS, and PF)
- Medical Insurance (80D) and NPS
Let’s see how that may lower taxes:
| Section | Dedication (Example) |
| 80C | ₹1,50,000 |
| HRA | ₹2,00,000 |
| 80D | ₹25,000 |
| Total Deductions | ₹3,75,000 |
Revised taxable income is ₹22,00,000 minus ₹3,75,000, which equals ₹18,25,000.
If you add the cess, you will need to pay ~₹3,00,936 in tax.
Monthly TDS = ₹25,000
Because of this, in-hand monthly would be ₹1,48,000, which is around ₹5,000–₹6,000 greater than what you’d get under the new rules.
Tips to Maximize In-Hand Salary
Tax Planning
- If your situation allows it, use the rules from the previous regime.
- Under 80C and 80CCD(1B), put your money in ELSS, PPF, and NPS.
Meal Coupons, Sodexo
- You can enjoy these benefits without paying taxes, as long as you don’t exceed the limits.
Reimbursements
- Demand details of phone, internet, LTA (Land Transport Authority) costs, and medical reimbursements.
Negotiate Bonus Payouts
- It may help your cash flow if you get bonuses paid every three months, not each year
Conclusion
Even while it may seem like a large wage, you should anticipate making between ₹1.42 and ₹1.48 lakhs per month after taxes, PF, tips, and other expenses are deducted. It becomes better if you apply smart tax techniques, save frequently, and only spend when necessary.
Those who manage this income range effectively can benefit from early freedom, comfortable urban life, and future financial gain.
FAQs
Is 24 LPA an acceptable salary in 2025 in India?
Absolutely, someone in the tech, finance, or consultancy sectors can consider a 24 LPA package excellent. You’ll be making a high salary. If you take your budget seriously, you can handle life in metro cities and still invest and save for yourself.
How much of the 24 LPA CTC will be taken home as an in-hand salary?
You can expect your in-hand monthly salary to be anywhere from ₹1,42,000 to ₹1,48,000. My total (including bonus) annual income is approximately ₹19,00,000+.
On what income tax will my 24 LPA salary be taxed?
According to the new law, someone earning ₹22 LPA before tax will pay approximately ₹3.74 lakhs a year in income tax and cess. Thanks to HRA and 80C deductions, the old system brought taxable income down to about ₹3 lakhs per year, depending on how you planned.
Does the tax regime of 24 LPA call for an old or new calculation?
The deduction you receive is based on what you are eligible for.
- The old regime is your best choice if you are eligible for HRA, can claim 80C of up to ₹ 1.5 L, and fall under 80D and NPS.
- When you have few exemptions, a simple regime is best.
Check out an online tool to compare taxes before filing your documents.
Is the bonus a part of the money you get from working?
Usually not. Regular bonuses, whether for performance or at the end of the calendar year, are covered in CTC but don’t form part of the regular monthly or quarterly pay. You won’t see the bonus in your fixed income unless your employer gives it to you every month.
