Self Assessment Tax: Computation and Payment
What is Self-Assessment tax?
Self-Assessment tax is the tax which is calculated by the taxpayer on his own and then paid to the government. It is ought to be paid before the filing of Income Tax Returns. It has to be accompanied by Challan NO. /ITNS 280. It can be paid both online and offline by depositing in the bank.
All the details of the tax payment like date of payment, Challan No. etc has to be mentioned in the Income Tax Return while filing it.
Computation of Self-Assessment Tax
For computing the tax, one should follow the steps discussed below:
|Tax Payable on Total Income||——-|
|Add- Interest under Section 234A/234B/234C||——-|
|Less- Relief under Section 90/90A/91||——-|
|Less- MAT Credit under Section 115JAA||——-|
|Less- Advance Tax||——-|
|Tax to be paid||Total Amount|
Partly paid Self-Assessment Tax
In case the tax paid is not in full, the amount which a taxpayer pays should first be adjusted towards the interest payable and the balance towards tax. Let us understand this with the help of an example:
Income Tax – 2,00,000
(Add) Interest under Section 234A/B/C – 30,000
(Less) TDS and Advance Tax – 50,000
Self-Assessment Tax to be paid under Section 140A – 1,80,000
Amount paid as Self-Assessment Tax – 70,000