Self Assessment Tax Explained in FAQ's

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.

2.Who are all liable to pay Self Assessment Tax?

All taxable Individuals and Corporates are liable to pay Self Assessment Tax.

3.When should the Self Assessment Tax be paid?

There are no specific dates to pay Self Assessment Tax. (Non payment of Self Assessment Tax and non filing of the returns within the due date of filing i.e., 31^st July will fetch Interest u/s 234)

4.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.

5.What is the procedure for paying Self Assessment Tax?

Direct Mode of Payment:

Self Assessment Tax can be paid by filling a Tax Payment Challan, ITNS 280. Challan, at designated branches of banks empanelled with the Income Tax Department.

Online Mode of Payment :

Assessee could pay Self Assessment Tax Online through the NSDL website, or Click on this linkhttps://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

a.Then select Challan No./ITNS 280(Payment of Income Tax & Corporation Tax)

b.Select Tax Applicable as (0021 – Income Tax – Other than Companies)

c.Select Assessment Year (eg. If FY 2014-15, then AY is 2015-16)

d.Then select type of payment as (300) Self Assessment Tax, and fill rest details.

e.Online Payment is allowed only by Net Banking & not by Credit/ Debit cards.

f.Select the correct assessment year

g.Fill in the form and click “Proceed”

h.Fill in the Tax Details

i.Enter the Tax payable amount

j.Confirm & Proceed

6.What if an individual fails to pay Self Assessment Tax?

Income Tax Returns can be filed only if we have paid the Tax due to the government. Further, non payment of Tax is a criminal offence and the individual is liable to be penalized & punished under the court of law. Moreover, Interest will get added to your tax liability till the date of payment of tax.

7.How do an individual know if he/she has already paid Self Assessment Tax?

Once you have paid the Self Assessment Tax, it will reflect on your Form 26AS within 2-3 days of making the payment.

8. What would happen if a person has wrongly paid his/her Self Assessment Tax, instead of Assessment Year 2015 – 2016, they have selected 2014 – 2015?

Selection of wrong Assessment Year while paying tax will result in demand for the amount of tax to be paid for that respective year. It can be corrected through Challan Rectification Process. Please Contact us for further details.

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