Tax deduction at source from salary: new withholding rules require employers to compute taxable salary, allowances and deductions accordingly. Instructions require employers to deduct tax at source from salaries using the Finance Bill rates for payments on or after April 1, applying revised perquisite valuation rules and including fees, commissions and perquisites in estimated salary except specified exempt payments. A standard deduction for employment related expenditure is allowed subject to slabbed percentages, ceilings, and restrictions where conveyance allowance or employer vehicle use applies; qualifying contributions to provident funds, life insurance and specified savings receive tiered deductions subject to an overall cap. Rounding rules, limited treatment of charitable donations for withholding, record keeping requirements, and penal consequences for failure to deduct or remit tax are set out.