SELF ASSESSEMENT UNIT -2 PART iii

What is Self-Assessment Tax?

Government of India mainly collects 3 kinds of taxes from people. They

are Advance Tax, Tax Deducted at Source / TDS and Self-Assessment
Tax / SAT. Self-Assessment Tax is the balance tax (after deducting
Advanced tax and TDS) which an assessee pays on the income that
has been assessed.
However, if an individual needs to file an IT returns in India he should
pay his/her SAT before it. Self-Assessment Tax is filed by
the submission of Challan 280 of Income Tax.
If the Advance Tax and TDS tax amount is more than the actual tax,
the SAT need not be paid. In this case, an assessee can get an Income
Tax refund.

The Self-Assessment tax is calculated at the end of a financial year.

So, there is no specific payment date for this tax. However, it should
be before the IT returns filing date to avoid payment of interest on the
tax amount.

Calculation of SAT

A= Your total payable tax

B= Interest to be paid as per section 234A / 234B / 234C (In case of a

delayed filing of returns or remittance of advance tax

C= Relief on tax amount under Section 90/90A/91

D= MAT Credit amount under Section 115JAA
E= TDS/TCS
F= Advance Tax

Payable SAT calculation.

So, The total Self-Assessment Tax you have to pay = (A+B)-(C+D+E+F)

For Example: 
Income Tax including surcharge – 1,00,000
(Add) Interest under Section 234A/B/C – 40,000
(Less) TDS and Advance Tax – 45,000
Self-Assessment Tax that has to be paid under Section 140A – 95,000
Amount paid as Self-Assessment Tax – 60,000

Payment process for SAT

The following steps will guide you to do the payment process for Self-
Assessment Tax online.

Ste1: Go to https://onlineservices.tin.egov-
nsdl.com/etaxnew/tdsnontds.jsp
Step 2: Next, select the ‘Challan no./ITNS 280’ tile, and click ‘proceed’.
Step 3: Select ‘(0021) Income-tax (other than companies)’.
Step 4: Then fill your PAN, name and other contact details.
Step 5: Select the Assessment year for which you want to make the
payment.
Step 6: Next, in the ‘type of payment’ select (300) Self Assessment
Tax.
Step 7: Then select your ‘Mode of Payment’ (Net Banking or Debit
card). It will soon redirect you to the bank which you have selected.
Step 8: Fill the details regarding your taxable amount.
Step 9: Review your challan details displayed (CIN, payment details
and name of the bank) and then confirm it.
Step 10: Then click on ‘Proceed for Payment’.
Then save your challan (as soft or hard copy). You can see it in your
Form 26AS in a few days. If not, you can fill the challan details when
you file the IT return.

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