Tax withholding on salaries: updated deduction rates and modified exemptions applicable for the fiscal year Revision of rules for deduction of income-tax at source from salaries for the financial year 1975-76 prescribes the applicable rate schedule and raises the nil-exemption slab; taxable salary is computed including fees, commission, perquisites and profits in lieu of salary but excluding specifically exempt payments, with deposits under the Additional Emoluments Act excluded when credited and included when repaid. A standard deduction for employment expenses is allowed subject to percentage, ceiling and restriction rules, qualifying payments for insurance and provident fund receive staged allowances subject to an overall cap, and a deduction for higher education expenses of dependents is available within prescribed eligibility limits.