NEW DELHI, April 15 -- Earning Rs.12 lakh and paying zero tax is no longer the ceiling under the new regime. With the right salary structure and employer-backed benefits, even professionals earning Rs.15 lakh, or more, can reduce their taxable income to zero.

That shift marks a break from the old regime, where tax planning revolved around deductions such as house rent allowance (HRA), leave travel allowance (LTA), home loan interest and Section 80C investments. The new regime strips most of these away, but compensates with lower rates and a narrower, more efficient set of benefits that can deliver equal or better outcomes.

Foremost, the new labour codes are quietly reshaping salary structures in a way that lowers taxable income for most...