Introduction:

At the conclusion of each fiscal year, taxpayers are required to review their financial records to ascertain any outstanding taxes, which must be settled subsequent to TDS (Tax Deducted at Source) and advance tax payments. This outstanding tax, referred to as self-assessment tax, necessitates computation and prompt payment by the taxpayer to evade penalties.

If you have additional income or experience a sudden increase in income during the financial year, it may become necessary to settle self-assessment tax obligations. Continue reading to learn the process of calculating self-assessment tax, making online payments, and other pertinent details.

Self-Assessment Tax:

When you file your taxes, the sum of TDS and advance taxes you’ve paid throughout the year is subtracted from your total tax liability. If the amount you’ve already paid falls short, you’ll be required to settle the remaining balance to bridge the disparity, commonly known as self assessment tax.

It is prepared after the end of the financial year but before filing the income tax return. Making these payments on time helps avoid any penalties or interest.

Eligible to  Pays Self-Assessment Tax:

Every individual with an income source is required to remit self-assessment tax to the government before the close of each fiscal year. In the case of salaried individuals, the employer typically handles this tax payment. Instances of overlooking self-assessment tax often occur when an individual earns a lump sum from a fixed deposit or other investments and inadvertently omits it while filing TDS. It’s crucial, however, to account for all income sources when calculating income tax payments.

Self-Assessment tax Calculation:

• To compute self-assessment tax, adhere to these steps:
• The initial step entails computing the total taxable income of an individual based on the income tax slabs.
• Include any interest required to make a payment under section 234A, 234B, or 234C.
• Following the completion of this addition, the next step involves deducting the relief amount as specified in Section 90 or 90A from the total amount.
• This section also requires taxpayers to deduct MAT credit amount under section 115JAA (which applies only to companies/entities).
• Upon completion of the previous steps, the final deduction should involve the advance tax amount to ascertain the exact self-assessment tax paid by a taxpayer.

Process to Pay Self-Assessment Tax Online:

• Here are the steps to successfully make an online payment for self-assessment tax:
• Log in to your account by visiting the Income Tax e-filing portal.
• On the website, under Services, go to the “E-Payment” section, then click on “E-Pay Taxes”. Select the appropriate link for e-payment, which will redirect you to the NSDL website.
• This step entails selecting the appropriate challan, such as ITNS 280, ITNS 281, ITNS 282, ITNS 283, ITNS 284, or Form 26 QB demand payment, based on the individual’s specific requirements.
• During this step, individuals are required to furnish details such as PAN/TAN, along with challan information including the nature of the payment made, taxpayer’s contact details and address, as well as the bank name and relevant payment details through which the transaction will be processed.
• Once you have submitted the aforementioned information, the portal redirects you to the submission page.  If the PAN or TAN details provided by the person are valid as per ITD PAN/TAN owner, the website will fetch the complete details including full name of the taxpayer and display it on the screen .
• After confirming and verifying the entered information on the screen, the taxpayer will be directed to the net-banking site to proceed with the payment.
• During this step, login credentials such as a user ID and password for net banking will be necessary. Taxpayers should log in to the net banking website and input the payment details.
• This concluding step entails the successful payment of e-tax. A challan containing the Challan Identification Number (CIN) and payment details, including the bank name, will be generated and displayed on the screen.
• A taxpayer should retain this challan as it serves as proof of payment.
• Following the steps outlined above makes the e-payment of taxes a hassle-free process, ensuring successful payment of self-assessment tax.

Status Inquiry for Self-Assessment Tax Payment:

• Taxpayers want to check the status of their self-assessment tax payment, a task easily accomplished with a few simple steps:
• Go to the official TIN-NSDL portal and go to the “Services” section. Now, select the “Challan Status Inquiry” tab from the options provided.
• On the redirected page, under the “For Taxpayer’s Title,” select “CIN-based view” and designate yourself as the taxpayer.
• During this step, individuals are required to verify specific details of the challan slip, such as the challan tender time, challan serial number, etc. Upon completion of the verification, enter the captcha cryptogram and proceed by selecting the “agree” option.
• It’s essential to note that it may take 5 to 10 days for the status to refresh, and taxpayers may anticipate one of three possible outcomes from this inquiry: No records found, price matched, and accepted by TIN.

Form 26AS in the Context of Self-Assessment Tax:

• Form 26AS is very important as it contains important tax related information, including Tax Deducted at Source (TDS), Tax Collected at Source (TCS), Self Assessment Tax Payment, Advance Tax Payment, and more around.
• This form is significant as taxpayers can verify past transactions before filing an income tax return. Additionally, it reduces the likelihood of errors by providing clear information about all taxes paid through bank accounts on behalf of a taxpayer.

Conclusion:

Filing self-assessment tax is crucial before submitting an income tax return. It involves calculating by deducting all tax credits such as TDS, TCS, MAT credit, etc. For salaried individuals, successful income tax filing hinges on completing self-assessment tax payment. Therefore, taxpayers must calculate and file accurately, as minor discrepancies can cause significant obstacles in future tax payments.