Tax on Tax Calculation

[faisal_desperado]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by olympia</i>
<br />Laptop & Faisal have a look on this file & tell me either i m correct in calculation or not

http//www.2shared.com/file/wJ4Zyx71/Tax_on_Tax_Calulation.html
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Olympia,

Your steps are correct however at Rs. 900,000, threshold will be changed and according rate will be changed.

At cell B37, you need to mention 9% instead of 7.5%, then calculation will automatically be changed due to formulae.

However, using marginal approach will surely help(in this particular case) to reduce the tax from the current level.

Let me know, if confusion is yet to be resolved.

Best Regards,

Faisal.