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Friday, May 7, 2010

To compute income tax in Excel-2007


Name and taxable income are  entered in cells B5:B70 and C5:C70 respectively. Generate
income tax in cells D5:D70  rounded to nearest integer using the following policy.
Income
Income Tax
First Rs.100000
Nil
Next 250000
10%
Next 300000
20%
Excess
30%

To compute income tax in column D.
Enter the formula,
 =ROUND(IF(C5<=100000,0,IF(C5<=350000,(C5- 100000 ) * 10 % , IF (C5<=650000,25000+(C5-350000)*20%,85000+(C5-650000)*30%))),0)
  in cell D5 and then press enter key, using the fill handle of cell D5, copy the formula to cells D6 :D70, by dragging the fill handle up to cell D70.

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