Phoenix Auditing

Self-Assessment Tax

  1. What is self assessment tax?
  2. How do I calculate my self assessment tax?
  3. Is it necessary to pay self-assessment tax?
  4. How to Pay Self Assessment Tax online?
  1. What is self assessment tax?

Self Assessment tax means any balance tax paid by the assessee on the assessed income after taking TDS and Advance tax into account before filing the Return of income. Self-assessment tax is paid for a particular financial year end.

  • How do I calculate my self assessment tax?

Scan through the income tax slabs online.

Calculate the amount that is tax-payable on your total income.

Relief amount must be deducted under Sections 90 and 90A from the total amount

Subtract the advance tax amount

Finally, you will reach the self-assessment tax that is payable on your income tax

  • Is it necessary to pay self-assessment tax?

TDS hasn’t been deducted or the payment has been done at a lower rate. The self-assessment tax then comes in handy as you can pay it as soon as possible and avoid the interest on the taxable amount. Thus, it is not necessary, but a good practice to adopt to keep your tax-paying habit in check.

  • How to Pay Self Assessment Tax online?

Step 1: Go to TIN NSDL website of the I-T department.

Step 2: Go to “services” Click on “e-payment: Pay Taxes Online” option from the drop-down menu

Step 3: Scroll down to the Non-TDS/TCS section and choose “CHALLAN NO./ITNS 280”. This challan is used for payment of Income tax and Corporation tax.

Step 4: Enter your PAN and other details as asked in the form like your personal details, Assessment Year, type of payment, the name of the bank through which payment will be made etc.

Step 5: Give your confirmation after filling the form to be redirected to the net-banking website of your bank.

Step 6: Login to your net banking account & make the payment of tax.

Step 7: You will receive a challan counterfoil containing CIN, payment details & the name of your bank. Print & keep the copy safely with you.