Updates and details for What is Self Assessment Tax? Procedure, Importance:
In this article, I have given the brief description for Self Assessment Tax, Procedure to pay Self Assessment Tax and also the importance of paying Self Assessment Tax. So, just read the article carefully to get more details and keep browsing our site.
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.
System under which the taxpayer is required to declare the basis of his assessment, to submit a calculation of the tax due and, usually, to accompany his calculation with payment of the amount he regards as due.
The role of tax authorities is to check that the taxpayer has correctly disclosed his income.
Procedure to Pay Self Assessment Tax Online:
Here are the following steps to pay the self-assessment tax online. However, note that the online platform for payment only supports Net Banking:
- An individual can log on to the income tax website, www.incometaxindia.gov.in.
- Once he or she has signed in, an option “e-Pay taxes” will be visible.
- The person on clicking on this link will be redirected to the National Securities Depository Ltd, website.
- The individual can then select “challan no./ITNS 280” followed by “(0021) Income tax (other than companies)”.
- The person then needs to fill in the details such as PAN card details, name, contact details such as address, residential and official contact numbers and mobile numbers.
- The individual needs to then choose the appropriate year for assessment that he or she will be making the payment for.
- The person then needs to select the “type of payment”, which in this case will be “(300) Self Assessment Tax”.
- The individual can then choose the bank of their choice from the dropdown menu to make the payment.
- He or she needs to then enter the “tax payable amount”.
- The individual will be then directed to their bank’s own Net banking page to make the payment.
- Once the payment is made successfully a challan will be displayed. This will include CIN, all the payment details along with the bank’s name with which the payment has been made.
- It is advisable to keep a scan or hard copy of the same.
- Generally after the SAT is paid, it reflects on the individual’s Form 26AS within a few days. If it does not show, the challan details can be filled in when filing the income tax return.
Why should Self Assessment Tax be paid?
The Tax liability is computed after taking the various deductions & exemptions into account. If the Total Tax Paid (total of TDS & Advance Tax) is less than the Total Tax Liability, it means we owe the balance tax to the government. This has to be paid as Self Assessment Tax.
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