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Wednesday, May 5, 2010

Write steps to calculate total tax payable by the individuals at the following rate showing income tax, surcharge and total tax in column C, D & E respectively:Surcharge is to be calculated at 10% on the income tax only if the Income exceeds Rs.5 lakhs. (Excel-2007)


The following data has been entered in a Excel worksheet


Write steps to calculate total tax payable by the individuals at the following rate showing income tax, surcharge and total tax in column C, D & E respectively:
Income
Tax Rate
First Rs.50,00
0%
Next Rs.10,000
10%
Next Rs.90,000
20%
Excess
30%

Surcharge is to be calculated at 10% on the income tax only if the Income exceeds Rs.5 lakhs.

To compute income tax in column C.
Enter the formula,
=IF(B2<=50000,0,IF(B2<=60000,(B2-50000)*.1,IF(B2<=150000,1000+ (B2-60000)*.2, 19000+(B2-150000)*.3)))
in cell C2 and then press enter key, using the fill handle of cell C2, copy the formula to cells C3 :C6 by dragging the fill handle

To compute SURCHARGE in column D.
Enter the formula,
=IF(B2>500000,C2*10%,0) in cell D2 and then press enter key,
using the fill handle of cell D2, copy the formula to cells D3 :D6 by dragging the fill handle up to cell D6 .

To compute TOTAL in column E.
Enter the formula,
=C2+D2 in cell E2 and then press enter key,
using the fill handle of cell E2, copy the formula to cells E3 :E6 by dragging the fill handle up to cell E6 .

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