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Himachal Pradesh Uttarakhand
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If you want enjoy Rainy season then south and west zone are best option
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What is the source location , Are you looking some around or any where ?
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Kashmir, Dalhousie-Amritsar, Shimla- Manali, Darjeeling- Gangtok, Kodaikanal-Mysore these are very good places in July as that time it is very hot weather.
You can visit Nainital Uttrakhand. There are many place around like Sattal, Naukichiatal, Bhimtal, mukteshwar, ranikhet, ramgarh.
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With family u can visit North Side. In monsoon at less budget you can visit Maharashtra.
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Goa, if u want to enjoy monsoons
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Kerala is gud cbk my profile for write up on same
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There a lot of options. You can go Manali/Shimla/Dalhousie in Himachal Pradesh. You can go to Rishikesh/Haridwar/Rudra-prayag/Badrinath in Uttrakhand. You can go to Jammu. Then also you can go to North east indian states.
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If you love the monsoon and lush greenery everywhere then come to Goa... Hotel rates are cheaper during the monsoon season..
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Any hillstation - Nainital,Manali,Shimla.etc.
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My family went to Gangtok and Darjeeling You’ll have loads of fun with the family Though there are other places too Nainital,Corbett,Rishikesh,Manali,Ooty,Coorg
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Chikmanglur, coorg, medikeri, wayanad, mysore, sravanabelagola, sakleshpur, gokarna (its a travelers hub and very family type on few beaches)- karnataka matheran - Maharashtra
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If you want to enjoy monsoon then you can visit Maharashtra. Or else you can try for ( Rishikesh - Haridwar - DHANAULTI) trip
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Aaraku Valley
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In India : You can visit Kerala . It will be awesome in Monsoon Any place in Rajasthan will also be good
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