Originally Posted by
vikesh
Thanks for the reply. Thought I haven't used the formula u suggested, however I apologies for the ambiguity I left in my question. Actually, the tax bracket would work as follows:
If the taxable income is $650, then though it falls under slab 2, however the tax would be computed as under-
upto $500- no tax, and for the balance $150 since it falls in slab 2 hence $150*10%=$15. Therefore, the total tax liability would be $0+$15=$15.
Similarly if the taxable income is $1100, then tax would be calculated as under:
upto $500- no tax, for next $500-tax=($500*10%)=$50 and for the balance of $100 tax would be ($100*15%)=$15. Hence the total tax payable would be ($0+$50+$15)=$65.
Hope u understand the problem and will help me out.
Regards,
Vikesh
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