Tax deduction at source from salaries: exemption threshold raised, revised rates, standard deduction and education deduction rules. The circular directs application of the Finance (Amendment) Act rate schedule for deduction of tax at source from salaries for 1975-76, raising the exemption threshold and prescribing progressive slab rates with surcharge. It sets computation rules: no deduction below the exemption; a standard deduction for employment expenses subject to ceilings and special limits where conveyance or employer-provided vehicles apply; valuation of perquisites as per amended rules; exclusion of compulsory deposit credits until repayment; staged deductions for insurance and provident contributions capped by a percentage or absolute limit; and a limited education expenditure deduction claimable at withholding. Rounding, payroll reporting and penal sanctions for failure to deduct or pay are also specified.