Self Assessment Tax
Before Income tax return filing, the assessee is required the total tax liability and need to compare it with the advance tax paid. The difference between the two is the amount the assessee owes to the government. The difference between total tax liability and tax paid by the assessee is Self Assessment tax. Hence tax that is computed and paid to government by the assessee himself is “Self Assessment Tax” (SAT). Such tax is paid before filing income tax returns.
If assessee fails to pay such tax, he/she will not be able to file income tax returns. If the assessee continues the nonpayment of tax, some legal actions can be taken against him/her. He will also be liable to pay interest on delay of tax payment.
Calculation of Self Assessment Tax
SAT can be calculated using the following procedure:
|Tax payable as per Slab rates||XXXX|
|Add: Interest payable under section 234A, 234B, 234C||XXX|
|Less: Relief under section 90/90A/91||XXX|
|Less: MAT credit amount under section 115JAA||XX|
|Net tax payable||XXXX|
|Less: Advance tax paid||XX|
|SELF ASSESSMENT TAX||XXXXX|
All Tax payers are liable to pay self assessment tax.
There is no due date of paying SAT, but it should be paid before Filing returns on income tax. The last date of filing income tax return is 31st august.
What if the asesee fails to pay SAT?
As per section 140A (1), any tax due, should be paid before filing of return of income. Failure to payment of self assessment tax is default in tax payment. According to section 140A (3) if an assessee fails to pay Self Assessment tax either whole or partly, Interests under section 234B and 234C shall apply.
How to pay Self Assessment tax?
Self assessment tax can be paid either online or ofline mode.
Offline mode: SAT can be paid offline to any the authorized bank along with tax payment challan no./ITNS 280.
Online: following are the steps how can be SAT paid online:
1) Go to the website https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
2) Select challan No. 280
3) Select tax applicable as (0021)
4) Select Assessment year and then select Self Assessment Tax (300)
5) Fill in the details
Related Post: TDS on Bank Deposits
For any help on ITR Filing feel free to consult the tax experts at Taxraahi. You can file ITR yourself via our ITR software or get CA’s help on filing income tax return. You can also use the option of Business Return, Bulk Return or Revised Return Filing.