Dear Sir,
As per the Section 192, the Employer is required to deduct Tax at source on the amount payable at the average rate of Income Tax.
Rate of Deduction of Tax
In case of individual & HUF (other than II and III below)
(i) Where the total income does not exceed Rs.1,60,000/-. -------- NIL
(ii) Where the total income exceeds Rs.1,60,000/- but does not exceed Rs.5,00,000/-.------ 10% of the amount in access of 1,60,000/-
(iii) Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-.------- Rs.34,000/- + 20% of the amount by which total income exceeds Rs.5,00,000/-.
(iv) Where the total income exceeds Rs.8,00,000/-.------ Rs.94,000/- + 30% of the amount by which total income exceeds Rs.8,00,000/-.
In case of individual being a woman resident in India and below 65 years at any time during the previous year
(i) Where the total income does not exceed Rs.1,90,000/-.---- -Nil
(ii) Where total income exceeds Rs.1,90,000/- but does not exceed Rs.5,00,000/-.------10% of the amount by which the total income exceeds Rs.1,90,000/-.
(iii) Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-.-----Rs.31,000/- + 20% of the amount by which total income exceeds Rs.5,00,000/-.
(iv) Where the total income exceeds Rs.8,00,000/-.-------Rs.91,000/- + 30% of the amount by which the total income exceeds Rs.8,00,000/-.
In case of an individual resident who is of the age of 65 years or more at any time during the previous year :-
(i) Where the total income does not exceed Rs.2,40,000/----NIL
(ii) Where the total income exceeds Rs.2,40,000/- but does not exceed Rs.5,00,000/------10% of the amount by which the total income exceeds Rs.2,40,000/-
(iii) Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/- ------ Rs.26,000/- + 20% of the amount by which the total income
exceeds Rs.5,00,000/-
(iv) Where the total income exceeds Rs.8,00,000/- ---------Rs.86,000/- + 30% of the amount by which the total income
exceeds Rs.8,00,000/-
Reference: Income Tax Act 1961, Income Tax Rule 1962, Wealth Tax Act 1957, Wealth Tax Rules 1957
Notifications issued from time to time.