Self Assessment Tax

Latest amendments on account of Covid-19

Interest on late payment of TDS/TCS/SAT/Advance tax

As per Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020,
For delayed payments of advanced tax, self-assessment tax, regular tax, TDS, TCS made between 20th March 2020 and 30th June 2020, reduced interest rate at 9% instead of 12%, /18% per annum ( i.e. 0.75% per month instead of 1/1.5 percent per month) will be charged for this period. No late fee/penalty shall be charged for delay relating to this period.

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?

Government of India mainly collects 3 kinds of taxes from people. They are Advance Tax, Tax Deducted at Source / TDS and Self-Assessment Tax / SAT. Self-Assessment Tax is the balance tax (after deducting Advanced tax and TDS) which an assessee pays on the income that has been assessed.

However, if an individual needs to file an IT returns in India he should pay his/her SAT before it. 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 SAT 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. So, there is no specific payment date for this tax. However, it should be before the IT 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
F= Advance Tax
Payable SAT calculation.
So, The 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 following steps will guide you to do the payment process for Self-Assessment Tax online.

Step 1: Go to

Step 2: Next, select the ‘Challan no./ITNS 280’ tile, and click ‘proceed’.

Step 3: Select ‘(0021) Income-tax (other than companies)’.

Step 4: Then fill your PAN, name and other contact details.

Step 5: Select the Assessment year for which you want to make the payment.

Step 6: Next, in the ‘type of payment’ select (300) Self Assessment Tax.

Step 7: Then select your ‘Mode of Payment’ (Net Banking or Debit card). It will soon redirect you to the bank which you have selected.

Step 8: Fill the details regarding your taxable amount.

Step 9: Review your challan details displayed (CIN, payment details and name of the bank) and then confirm it.

Step 10: Then click on ‘Proceed for Payment’.

Then save your challan (as soft or hard copy). You can see it in your Form 26AS in a few days. If not, you can fill the challan details when you file the IT 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.