​How to deposit Self Assessment Tax ?

By | November 2, 2016
(Last Updated On: November 2, 2016)

How to deposit Self Assessment Tax ?

Self Assessment Tax

Self Assessment Tax

Your income tax return cannot be submitted to the tax department, unless you have paid tax dues in full.

Self – Assessment Tax  is to be deposited to the credit of Government by using the challan prescribed in this behalf, i.e., ITNS 280.

Mode of Payment of Self Assessment Tax

Online Payment of  self-assessment tax

Click to Pay ITNS 280

Challan for Physical Payment of self-assessment tax to the bank

Download ITNS 280

Tax can be paid in the designated banks through  physical mode, i.e., cash/cheque also .

When is self-assessment tax payable

When on computation of income for the year for the purpose of filing the return of income  it is found that some tax remains payable even after adjustment of

(a) advance tax, if any, paid,

(b) tax deducted/collected at source,

(c) relief/deduction of tax claimed u/s 90 or 91 on account of tax paid in a country outside India,

(d) relief of tax claimed u/s 90A on account of tax paid in any specified territory outside India, and

(e) tax credit claimed u/s 115JAA or under section 115JD,

such balance tax along with interest thereon is required to be paid as self-assessment tax before filing the return of income.

Computation of Self Assessment Tax

Computation of total income and tax liability for the year

ParticularsAmount
Income from salaryXXXXX
Income from house propertyXXXXX
Profits and gains of business or professionXXXXX
Capital gainsXXXXX
Income from other sourcesXXXXX
Gross Total IncomeXXXXX
Less : Deductions under Chapter VI-A (i.e., under section 80C to80U))(XXXXX)
Total Income (i.e., taxable income)XXXXX
Tax on total income to be computed at the applicable rates (for rates of tax, refer “Tax Rate” section)XXXXX
Less : Rebate under section 87A(XXXXX)
Tax Liability After RebateXXXXX
Add: SurchargeXXXXX
Tax Liability After SurchargeXXXXX
Add: Education cess @ 2% on tax liability after surchargeXXXXX
Add: Secondary and higher education cess @ 1% on tax liability after surchargeXXXXX
Tax liability before rebate under sections 86, section 89, sections 90,90A and 91 (if any) (*)XXXXX
Less : Rebate under sections 86, section 89, sections 90, 90A and91(if any) (*)(XXXXX)
Tax liability for the year before pre-paid taxesXXXXX
Less: Prepaid taxes in the form of TDS, TCS and advance tax(XXXXX)
Self Assessment Tax payable XXXXX

(*) Rebate under section 86 is available to a member of association of persons (AOP) or body of individuals (BOI) in respect of income received by such member from the AOP/BOI.

Rebate (i.e., relief) under section 89 is available to a salaried employee in respect of sum received towards arrears of salary, gratuity, etc.

Rebate under sections 90, 90A and 91 is available to a taxpayer in respect of double taxed income, i.e., income which is taxed in India as well as abroad.

Note : For provisions relating to Minimum Alternate Tax (MAT) in case of corporate taxpayers and Alternate Minimum Tax (AMT)  in case of non-corporate taxpayers refer tutorial on “MAT/AMT”.

Failure to pay self-assessment tax

Where an assessee fails to pay self-assessment tax and interest as required by section 140A(1) he will be deemed to be an assessee in default and will be liable for penalty as provided in section 221.

Filing of Income Tax Return without payment of self-assessment tax

Prior to assessment year 2017-18 , if an assessee files return of income, within time, without payment of self-assessment tax along with interest, if any, in terms of Explanation (aa) below sub-section (9)of Section 139 it would be considered as defective.

Finance Act, 2016, has carried out omits the said clause (aa), with effect from assessment year 2017-18. Accordingly, from and after assessment year 2017-18, if a return of income is filed within the permitted time or otherwise, without paying self-assessment tax along with interest, if any, it would not be considered as defective return.

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