Tax Deduction at Source from Salaries: guidance on applicability, allowable deductions, surcharge and compliance requirements. Instructions for tax deduction at source on salaries for 1973-74 apply rates in Part III of the First Schedule to the Finance Bill, 1973. Tax is deductible only where estimated salary exceeds Rs. 5,000. Allowable deductions include profession tax, standard travelling deductions by vehicle category, and qualifying contributions to life insurance, provident funds and specified accounts subject to percentage rules and a cap (first Rs. 2,000 full; 50% of next Rs. 3,000; 40% of balance; overall limit 30% of estimated salary or Rs. 20,000). Rounding, surcharge with marginal relief, proof requirements and criminal penalties for failure to deduct or pay are specified.