Self Assessment Tax

Hello Everyone, in this post we are going to discuss about Self- Assessment Tax. We will be covering the following topics:

What is Self-Assessment Tax?

The three main taxes collected by the Indian Government are Advance Tax, TDS as well as Self-Assessment Tax. Self-Assessment Tax or SAT is the balance tax (after deducting Advanced tax and TDS) which an assessee pays on the income that has been assessed.
However, SAT should be already paid beforehand if an individual needs to file an income tax return in India. Self-Assessment Tax is filed by the submission of Challan 280 of Income Tax. If the Advance Tax and TDS tax amount is more than the actual tax, the Self-Assessment tax need not be paid. In this case, an assessee can get an Income Tax refund. The Self-Assessment tax is calculated at the end of a financial year.
There is no specific date of payment of this tax. However, it should be before the tax returns filing date to avoid payment of interest on the tax amount.

Calculation of SAT

A= Your total payable tax
B= Interest to be paid as per section 234A / 234B / 234C (In case of a delayed filing of returns or remittance of advance tax)
C= Relief on tax amount under Section 90/90A/91
D= MAT Credit amount under Section 115JAA
E= TDS/TCS
F= Advance Tax
Payable SAT calculation.
Ie, Total Self-Assessment Tax you have to pay = (A+B)-(C+D+E+F)
For Example: 
Income Tax including surcharge – 1,00,000
(Add) Interest under Section 234A/B/C – 40,000
(Less) TDS and Advance Tax – 45,000
Self-Assessment Tax that has to be paid under Section 140A – 95,000
Amount paid as Self-Assessment Tax – 60,000

Payment process for SAT

The online payment process for Self-Assessment Tax can be seen below:

  • Go to https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
  • Next, select the ‘Challan no./ITNS 280’ tile, and click ‘proceed’.
  • Select ‘(0021) Income-tax (other than companies)’.
  • Then fill your PAN, name and other contact details.
  • Select the Assessment year for which you want to make the payment.
  • Next, in the ‘type of payment’ select (300) Self Assessment Tax.
  • Then select your ‘Mode of Payment’ (Net Banking or Debit card).

It will redirect you to the bank which you have selected.

  • Fill the details regarding your taxable amount.
  • Review your challan details displayed (CIN, payment details and name of the bank) and then confirm it.
  • Then click on ‘Proceed for Payment’.

Then save your challan (as soft or hard copy). It will be later seen in your Form 26AS in a few days. If not, the challan details can be filled when you file the Income Tax return.

We have come to an end of this post on Self-Assessment Tax. Share your questions and opinions about this blog in the comment section below.