Income tax deduction from salaries: employers must deduct TDS at prescribed rates, comply with PAN, forms and timelines. Employers must deduct income tax from salaries for FY 2014 15 under Section 192 using the prescribed age based slab rates, including surcharge and education cesses, by estimating total salary (including taxable perquisites), allowing permitted deductions (including Chapter VI A), and deducting tax monthly; deductors must obtain PAN/TAN, deposit TDS by prescribed dates, file electronic quarterly statements (Form 24Q) and, for government book entries, Form 24G, issue Form 16, observe perquisite valuation rules, and face interest, penalties and prosecution for non compliance.