A 50 LPA salary package places an individual among the highest earners in India. However, the headline figure often hides a crucial detail—the actual amount that reaches your bank account after tax. With the introduction of the new tax regime alongside the traditional old regime, high-income professionals frequently struggle to determine which option delivers a better 50 LPA in hand salary.
This guest post explains how a ₹50 lakh annual salary is taxed under both regimes and which one usually results in higher take-home pay.
Understanding 50 LPA In-Hand Salary
A Cost to Company (CTC) of ₹50 LPA includes basic salary, allowances, employer PF contribution, bonuses, and other benefits. After removing non-cash components and statutory deductions like employee PF and professional tax, the gross taxable income is calculated. Income tax then becomes the largest factor reducing the 50 LPA in hand salary.
50 LPA Salary Under the Old Tax Regime
The old tax regime allows multiple deductions and exemptions that significantly reduce taxable income. These include the standard deduction, HRA exemption, Section 80C investments, NPS contributions, health insurance premiums, and home loan interest.
For individuals who actively use these deductions, taxable income can drop substantially. As a result, the monthly 50 LPA in hand salary under the old regime typically ranges between ₹3.1 lakh and ₹3.3 lakh per month, depending on salary structure and tax planning. This regime generally benefits salaried professionals with home loans, long-term investments, and structured financial planning.
50 LPA Salary Under the New Tax Regime
The new tax regime offers lower slab rates but removes most deductions and exemptions. While this simplifies tax calculation, high-income earners often lose the benefit of tax-saving instruments.
Under the new regime, a professional earning ₹50 LPA usually takes home around ₹2.8 lakh to ₹3.0 lakh per month. Although the tax rates appear attractive, the lack of deductions often results in a lower 50 LPA in hand salary compared to the old regime for individuals with significant eligible investments.
Old vs New Regime: Key Differences in Take-Home Pay
For a ₹50 LPA salary, the old regime usually results in higher take-home pay when deductions are fully utilized. The new regime may be suitable for individuals who prefer simplicity, have minimal investments, or do not claim HRA or home loan benefits. However, from a pure cash-flow perspective, the old regime often delivers a better 50 LPA in hand salary.
Which Tax Regime Should You Choose?
The right choice depends on personal financial habits. Professionals who invest regularly, claim HRA, or contribute to retirement schemes usually benefit more from the old regime. Those without major deductions may find the new regime more convenient, even if the in-hand salary is slightly lower.
Final Thoughts
For high earners, choosing between the old and new tax regimes has a direct impact on monthly take-home pay. In most cases, effective tax planning under the old regime leads to a higher 50 LPA in hand salary. However, individual circumstances vary, and evaluating both options annually is essential to maximize post-tax income.