What is Self-assessment Tax?
Persons need to calculate the income tax final liability after TDS amount deduction from the income source and for the final year payable advance tax. After the year end, before filing the return of income tax of a person, if the tax is due, then for the amount final, which a person liable is computed, and this is called as Self-Assessment tax. Before filing the return of tax, this is the final computation.
Why Should Self-Assessment Tax be paid?
Self-assessment tax needs to pay by a person for various sources of the income. If a person does not get income to pay the advance tax installment final payment, then the tax deduction at source is performed at a decreased rate or it is not deducted against the applicable higher rate of tax on your filing of income tax.
For those individuals who are salaried, it happens sometimes that from short term bonds or the fixed deposit, the individual earned a big amount and does not tell his or her employer. Therefore, this amount is not take into account for the deduction of the tax. Therefore, you require to pay the self-assessment tax. You require to pay this tax after end of a certain financial year. The payment date is not specified for the tax payment.
You need to pay self-assessment tax as quickly as possible without any notification for the last date of filing of the return of the tax.
Procedure to Pay Online Self-Assessment Tax
The process to pay self-assessment tax online is described below. But you need to remember that only net banking mode of payment is supported by online platform.
- The first step is to visit the portal www.incometaxindia.gov.in.
- The next step is to login to this website.
- After the signup, you can view “e-pay taxes” option.
- When you click on the link, it will redirect you the website of the National Securities Depository Ltd.
- Here, you require to choose “Challan no./ITNS280” and then require to choose “(0021) Income tax”
- Here, you require to fill information like details of PAN card, contact information, name, address, mobile numbers, official and residential contact numbers etc.
- Then you have to select the assessment appropriate year for making the payment.
- The next step is to choose “type of payment”, and it is “(300) self-assessment tax”.
- To make the payment, you require to select the bank from the menu dropdown.
- Then you require to input the “tax payable amount”.
- Then you will be redirected to the net banking page of your chosen bank for making the payment.
- After the payment, a challan is shown on the screen. It will display payment information, CIN, name of the bank via which the payment is made.
- You require to keep the hard copy or scan copy of the payment made.
- After the payment of the self-assessment tax, it will display on the form 26AS of the person with in some days.
Calculation of Self-Assessment Tax
If you make the payment for the self-assessment tax before the date of assessment, the below two procedures are considered for the calculation of the interest.
The advanced tax amount which is not paid is the requisite amount for calculation of the interest for self-assessment tax payment.
The amount of the advance tax after deducting the amount of self-assessment is take into account for calculation of payment date for the self-assessment tax.