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Self Assessment Tax

Every person before submitting a return is under an obligation to compute his income and pay tax accordingly with interest if any. If any assessee does not deposit tax and interest according to provisions of the Income Tax Act, then he will be deemed as an assessee in default.
  • Self Assessment Tax  (SAT) means the amount that an assessee has to pay towards his tax liability on the income as derived. 
  • Self Assessment Tax shall be the balance amount payable after deducting Advance Tax and TDS for the given Financial Year. 
  • Individuals who are required to file their income tax returns are liable to pay their SAT before filing the return. SAT can be paid by submitting Challan 280 available online at income tax e-filing portal.   
  • There is no specific date for paying SAT as it is computed at the end of a financial year, there is no due date for payment of such tax. Nevertheless, taxpayers must make SAT payments before filing their respective income tax returns to avoid paying interest on the tax amount. 

Why Should One Pay Self Assessment Tax?

Self assessment tax (SAT) has to be paid by individuals who earn income from other sources. The tax amount is levied for the following reasons:

  • There might be some instances where a taxpayer fails to take an income into consideration while paying advance tax.
  • Sometimes the TDS amount deducted might be inaccurate. 
  • A salaried employee may earn a substantial income from investments such as fixed deposits and mutual funds which may not be known to the employer. 


Self Assessement Tax Payment Process

We can make the tax payment in 2 ways: 

  1. Without logging into the e-Filing Portal
  2. Log into the e-Filing Portal

 

1. Without logging into the e-Filing Portal:

  • Visit the e-Filing portal
  • Navigate to e-Pay Tax
  • Enter PAN and Mobile Number > Continue
  • Enter the OTP received on the mobile number entered > Continue
  • On the next screen, a successful verification message will be displayed > Continue
  • Select the category of tax payment > Proceed
  • Select the relevant Assessment Year & Type of Payment (Minor Head) > Continue
  • Enter the Tax Break up details > Continue
  • Select the mode of payment > Continue
  • On the next screen, you can preview the details entered > Pay Now
  • Select I agree to the terms & Conditions > Submit to Bank
  • You will be directed to the bank website where you will be required to select the mode of payment & hence make the payment. 
  • Upon successful payment, you shall see the Summary screen which shows the details of the taxpayer & tax payment.
  • Download the Challan receipt from the Summary screen for future reference.
  • Once the process is completed, you shall receive a confirmation on your registered email ID & Mobile Number.

2. Log into the e-Filing Portal (Pay Tax Online):

Following steps to be followed to pay self-assessment tax;

Step 1. Login & Navigate:
  • Visit official Income Tax portal https://www.incometax.gov.in/
  • Login to the portal using PAN and Password
  • On the Dashboard, click e-File > 'e-Pay Tax'. You will be navigated to the e-Pay Tax
  • On the e-Pay Tax page, click the 'New Payment' option to initiate the online tax payment.

Step 2: Select Assessment Year and Minor Head
  • On the New Payment page, click Proceed on Self assessment  tax payment tile.
  • After selecting the self assessment Tax Payment tile, select Assessment Year, Minor head, other details (as applicable) and click Continue.

Experiment:
Select Assessment year for the current financial year and Select Minor head to proceed further


Step 3: Add Tax Details & Make Payment

  • On the Add Tax Breakup Details page, add the breakup of total amount of tax payment and click Continue.
  • In the Select Payment Mode page, select Payment Gateway mode and click Continue. 
  • In the Preview and Make Payment page, verify the details and tax break up details and click Pay Now.
  • Read and select the terms and conditions and click Submit to Bank. Make the Payment.
  • After the payment is successful, you can download the Challan by clicking on the download button.
  • Details of payment and Challan Receipt are available under Payment History Tab on the e-Pay Tax page.

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