Tax deduction from salaries: employer duties, estimation rules and allowable exemptions and reporting obligations for payroll withholding. Rates and procedure for deduction of income-tax from salaries for 1995-96 under section 192 require employers to estimate gross salary including perquisites, allow specified deductions (standard deduction, Chapter VI-A) and applicable rebates, compute tax at prescribed slab rates, deduct monthly in equal instalments, remit using prescribed challans and TAN, issue Form No.16, and file annual returns; exemptions, perquisite valuation rules, aggregation of income where multiple employers exist, and penalties, interest and prosecution for non-compliance are explained.