For tax consultants who wants to calculate income tax here is the formula. In income tax usally tax rates are in slab system as shown below:

Now how to calculate tax of a person whose Net Income is 8,00,000 within a single cell?

Just rearrange your data in the below format and you are done.

But how this formula is calculating this result? What is the logic behind this?

Very simple just Click on Evaluate Formula button in Excel. You yourself can see all the internal process.

Few other situations where we can use this logic of the formula:

For calculation of commissions based on Slab system

For calculation of Qty discounts based on slab systems etc.

As i told you in my earlier article there are many ways in which we can use this Sumproduct formula. This is just one the many ways of using Sumproduct.

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