It is compulsory for every government worker to contribute to the smooth running of their respective districts. Depending on the district administration to disclose the different range of price calculated per capita. However, it varies from district to district.
In this article, you will learn the method of calculating the professional tax using the formula in MS Excel.
Before that, let us know some of the basic method of calculation. Let’s presume that the x company has got five employees and each of them receive different amount of salary. The table below is the employees’ salary detail.
| A | B | C | D | E | F |
|---|---|---|---|---|---|
| Sl.No. | Employees | Title | Salary | Annual Income | Amount Payable |
| 1 | Pynshngaiñ | Title 1 | 5,000/- | 60,000/- | 200/- |
| 2 | Bindo | Title 2 | 3,000/- | 36,000/- | 100/- |
| 3 | Arbin | Title 3 | 7,000/- | 84,000/- | 300/- |
| 4 | Jose | Title 4 | 6,000/- | 72,000/- | 250/- |
| 5 | Kyrshan | Title 5 | 2,500/- | 30,000/- | 100/- |
To get the Annual Income, you must multiply the capita income by 12. This process works fine in MS Excel, since it allows you to calculate the similar rows and columns as per the formula applied with the first one. The MS Excel formula is this: in the selected cell type equal sign (=), then, select the first cell containing the Amount of the first employee after that type the asterisk (*) sign followed by 12 and then hit enter from the keyboard. That is how you will get the Annual Income per employee.
Moving to the next step for the real calculation of the Tax to be paid is to follow strictly the following formula in order to get the exact calculation without encountering errors.
Again, go to the desired cell namely, the first cell of the Tax Payable of the first employee then, type equal sign (=) and apply the Logical Formula of IF Condition. How to do that, let’s get start. As per the Amount and the Annual Income given above, you can apply this Logical Formula of IF Condition. If the selected cell of the Annual Income is less than equal (<=) to 36,000 then, 100. Like this you must do for the remaining amount.
=IF(E1<=36000,100,IF(E1<=48000,150,IF(E1<=60000,200,IF(E1<=72000,250,IF(E1<=84000,300)))))
Once you are done with it then, just drag the cell using the fill handler.
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