Our government introduced a new Payee tax scheme. Can someone please explain how does the word 'less' work in this context?
"A less B" means "A minus B".
For example, "4% of X less 4,000" means "(4% of X) minus 4000", that is,
0.04 * X - 4000
This table describes progressive tax rate, where each bracket is taxed at its own rate. The higher the bracket, the higher the rate.
“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.