The rates of deduction of income-tax from the payment of income chargeable under the head “Salaries” during the financial year 2010-11

Tax Deduction at Source: updated employer withholding obligations and filing, deposit and perquisite valuation rules for salaries.

Prescribes employer obligations and rates for withholding income tax on salary payments for the 2010-11 year: employers must estimate taxable salary (including perquisites), deduct tax at payment using prescribed rates by income, age and gender categories, may elect to pay tax on non monetary perquisites (computed using an average tax rate), and must follow specified deposit, reporting and certificate issuance procedures. Mandatory quoting of permanent account and tax deduction numbers, electronic quarterly filing, valuation rules for perquisites, and penalties/interest for failure to deduct or deposit are explained.