Our government introduced a new Payee tax scheme. Can someone please explain how does the word 'less' work in this context?
“Less” means “minus.”
The table you posted describes a marginal tax rate. With a marginal tax system, parts of your income are taxed at different rates.
The first Rs. 100,000 of your monthly income is tax free, the next Rs. 50,000 is taxed at 4%, and the next Rs. 50,000 is taxed at 8%.
The text in the right column of the table is a formula to calculate your total tax. For example, if your monthly income is Rs. 160,000, then the first Rs. 100,000 is tax free, the next Rs. 50,000 is taxed at 4% (Rs. 2,000) and the final Rs. 10,000 is taxed at 8% (Rs. 800). The formula for an income of Rs. 160,000 is 8% of your monthly income minus Rs. 10,000. By applying this formula, we get:
(Rs. 160,000 * 8%) - Rs. 10,000 = Rs. 2,800
This is the same amount as we get if we calculate the tax of each portion of income at the different rates and add them up.