Self Assessment Tax - Complete Information

The Self-Assessment Tax needs to be paid in following scenarios:

If an individual has missed out on an income when making the final payment in the form of installment of their advance tax, etc.

It could also be a possibility that TDS was not deducted or done at a lesser rate against the higher tax rate applicable on your income tax filing.

It happens often for salaried individuals that a fixed deposit or from short term bonds he or she have been able to earn a sizable amount and hence have not mentioned it to your employer, driving the amount not to be considered for tax deduction. In such a case, the self-assessment tax will have to be paid.

Do note that there is no specification on the date of payment of this tax. The ideal time is to pay it as soon as possible, without waiting for the tax returns filing date, as a way to avoid payment of interest on the tax amount.

How to Pay Self Assessment Tax Online?

Follow the steps given below to pay the self-assessment tax online:

Step 1: You need to visit the Income Tax e-filing portal

Step 2: Click on the ‘e-Pay’ tax option present on the screen below the e-file tab from the top row.

Step 3: Click on the new payment tab present on the screen.

Step 4: Click on the first option present ‘Income Tax’ from the list and click on ‘Proceed’.

Step 5: Choose the correct ‘Assessment Year’ and select ‘Self-Assessment Tax (300)’ option from the drop-down menu and click on the next step ‘Continue’.

Step 6: Fill in the tax amounts in the boxes and click on ‘Continue’ to complete the transaction.

Step 7: Choose the bank from which you wish to complete the payment and choose the desired payment mode.

Step 8: Once you have processed the payment successfully, a challan will be generated which you can download by clicking on the ‘Download’ tab.

How to Calculate the Self-Assessment Tax?

Follow the steps given below to calculate the self-assessment tax:

Step 1: Compute the total income by adding income earned from all sources.

Step 2: Calculate the eligible deductions and exemptions.

Step 3: Apply the applicable income tax slab rates to the taxable income to arrive at your total tax payable.

You can use the formula for self-assessment tax calculation:

Self-Assessment Tax=(A+B) - C+D+E+F)

Where:

1. A = Total tax payable 

1. B = Interest under Sections 234A/234B/234C

1. C = Tax relief under Sections 90/90A/91

1. D = MAT Credit under Section 115JAA

1. E = TDS/TCS already deducted

1. F = Advance tax paid

Do note that the interest will be paid as per Section 234A if you file your ITR late. Sections 234B and 234C apply only when there is a delay in the payment of advance tax.

How to Download the Self-Assessment Tax Challan?

Follow the steps given below to download the self-assessment tax challan:

Step 1: Go to the Income Tax e-filing portal and log in using your credentials.

Step 2: Navigate to the ‘e-File’ menu and click on the ‘e-Pay Tax’ option from the dropdown list.

Step 3: Visit the ‘Payment History’ section, look for the self-assessment challan you wish to download, click on the three dots under the ‘Action’ column,

Step 4: Click on the ‘Download’ option.

Once downloaded, you can save the challan for future use.