The revenue from the taxation system of India is generated by two components - direct taxes and indirect taxes. The direct taxes are paid directly by the individual while indirect taxes are levied on various goods and services, which is collected by the Government. The self-assessment tax is a form of income tax which is a direct tax.

What Is a Self-Assessment Tax?

Taxpayers settle their tax dues in three ways - TDS (Tax Deducted at Source), Advance Tax and Self-Assessment Tax (SAT). The SAT holds a significant value in your tax calculations because it has to be calculated by self, and one cannot submit an ITR without it.

In general, the SAT is incurred from the additional income that one makes from other sources outside the regular salary, business and contract. In the case of salaried employees, where there is no other source of income, the SAT would be ideally zero. However, there can be some exception, such as when the TDS is deducted at a lower rate or when the Advance Tax was not correctly estimated.

When & How to Pay a Self-Assessment Tax (SAT)?

There is no specific time duration to clear your SAT dues, but the SAT must be filed before filing an ITR of the financial year. Furthermore, it must be kept in mind, there can be interest levied under Section 234A on the SAT amount if it exceeds the fiscal year.

The SAT can be paid either by offline or online means.

  1. Paying Offline SAT
    • To be paid only at designated branches of the bank that are linked to the IT department.
    • Filling the IT challan number 280 (can be downloaded online)
    • The cheque must be attached with the challan
    • It must be deposited in the bank
    • The receipt of the challan to be collected

  2. Online payment of SAT
    • Visit the website www.incometaxindia.gov.in. and sign in with “e-Pay taxes.”
    • On clicking the link, it will be redirected to the National Securities Depository Ltd, website.
    • Here you need to select “Challan no./ITNS 280" and then choose “(0021) Income tax (other than companies)”.
    • Now fill in the necessary information including PAN, address, contact details etc.
    • The assessment year for which the payment must be made must be chosen.
    • Select the “type of payment”, i.e. “(300) - Self Assessment Tax”.
    • Choose the bank and make the payment only through net-banking.
    • Upon completion, the displayed challan will include CIN and other transaction details.
    • Once paid, it will reflect on the 26AS form within a few days.
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DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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