Income Tax Deduction Guidelines for Salaries FY 1995-96: Section 192 Procedures, Employer Responsibilities, Exemptions, and Penalties.

The circular outlines the income tax deduction procedures from salaries for the financial year 1995-96 under Section 192 of the Income-tax Act, 1961. It specifies the tax rates based on income brackets, with no tax for incomes up to Rs. 40,000 and varying rates for higher incomes. The document details the responsibilities of employers in deducting tax at source, including handling cases of multiple employers, government employees, and pensioners. It also covers exemptions, deductions, and rebates applicable under various sections, including those for medical expenses, housing loans, and savings. Compliance and penalties for non-deduction or non-payment of tax are also addressed.