Tax deduction at source from salaries: employers must apply prescribed rates and permitted deductions when withholding tax. Employers must deduct income-tax at source from salaries for financial year 1971-72 only where estimated annual salary exceeds the exemption threshold, applying prescribed schedule rates and adjusting later in the year for earlier shortfalls; specified deductions (insurance, provident contributions and capped post office deposits) and category-based standard travel deductions (disallowed where conveyance allowance is paid) must be allowed in computing taxable salary, with rounding rules, disallowance of charitable donations at source except limited treatment for certain national funds, and penal consequences for failure to deduct or pay.