As the financial year closes, both employers and investors are making calculated adjustments—reshaping salaries, reviewing tax strategies and rebalancing portfolios—to stay aligned with changing rules and market conditions.

For companies, the biggest shift lies in salary restructuring. The revised definition of wages requires basic pay and most allowances to make up at least 50% of total compensation. That, in turn, raises the weight of components such as provident fund and gratuity, which are linked to basic pay.

The likely response: higher basic salaries and slimmer flexible allowances, especially as more employees move to the new tax regime with fewer exemptions. For individuals, though, the choice between tax regimes is far from…