Class Practice/Assignment-II
This is an assignment where you have to calculate the yearly income tax of some individuals. All the incomes are not taxable- the one on which tax is imposed is called taxable income. For example, basic income is fully taxable whereas up to 220,000 house rent income is not taxable. Bonus, commissions, overloads all are fully taxable. In this assignment you will be given the income components and you will calculate the total tax using the following guidelines:

How to calculate the yearly income tax?
For example the income of one person is given below (yearly) Basic | House rent | Overload | Commission | Bonus | 720000 | 288000 | 100000 | 200000 | 120000 |

His total taxable income = 720000+ (288000-220000) + 100000+200000+120000 = 12, 08,000
Now if we break down his tax using guidelines- Income | Tax | Remaining | First 220,000 | 0 | = 12, 08,000 – 220,000 = 9,88,000 | Next 300,000 | 10%* 3,00,000 = 30, 000 | =9,88,000 – 3,00, 000 = 6,88,000 | Next 400,000 | 15%* 4,00,000 = 60, 000 | =6,88,000 – 4,00, 000 = 2,88,000 | Next 2,88,000 | 20% * 2,88,000 = 57,600 | 0 | | Total = 147,6000 | |

25% tax would be applied if the income is more than 12, 20, 000.
Example 2: tax for a taxable income of 15,00,000 = 30, 000 + 60,000 + 60, 000 ( 20% * 400,000) + 25%* 300,000 = 225,000
Go to the excel2 file and calculate the total tax by using formula for the all the individuals ( you have to think a lot!)---- best of luck!