Self-Assessment Under Income Tax Act – Section 140A Self-assessment is the process where a taxpayer calculates and pays their own tax liability before filing the Income Tax Return (ITR). It ensures that all due taxes are paid before submission of the return. 📌 Key Aspects of Self-Assessment Tax 1️⃣Read more
Self-Assessment Under Income Tax Act – Section 140A
Self-assessment is the process where a taxpayer calculates and pays their own tax liability before filing the Income Tax Return (ITR). It ensures that all due taxes are paid before submission of the return.
📌 Key Aspects of Self-Assessment Tax
1️⃣ Applicable Section
- Self-assessment tax is governed by Section 140A of the Income Tax Act, 1961.
2️⃣ Who Needs to Pay It?
- If, after considering TDS, Advance Tax, and tax credits, there is any outstanding tax liability, the taxpayer must pay it as self-assessment tax before filing the ITR.
3️⃣ How to Calculate Self-Assessment Tax?
- Total Tax Liability (as per taxable income)
- Less: TDS Deducted
- Less: Advance Tax Paid
- Add: Interest under Sections 234A, 234B, 234C (if applicable)
- Balance Amount = Self-Assessment Tax Payable
4️⃣ Time of Payment
- Self-assessment tax must be paid before filing the ITR.
- If tax remains unpaid, the ITR will not be processed.
5️⃣ How to Pay Self-Assessment Tax?
- Pay online through Challan ITNS 280 at the Income Tax e-filing portal.
- Banks also accept payments for self-assessment tax.
6️⃣ Interest and Penalty
- If self-assessment tax is not paid on time, interest may be charged under Section 234A, 234B, and 234C.
- Late filing of the ITR can also lead to penalty under Section 234F.
7️⃣ Acknowledgment
- After payment, a challan receipt is generated, which should be mentioned in the ITR while filing.
📢 Final Thoughts
Self-assessment ensures that a taxpayer clears any pending tax before filing returns. Timely payment avoids interest and penalties, ensuring a smooth tax filing process. 🚀
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Summary Assessment Under Income Tax Act – Section 143(1) Summary Assessment is a computerized assessment of an Income Tax Return (ITR) without any human intervention. It is done under Section 143(1) of the Income Tax Act and is based purely on the details submitted by the taxpayer in the return. 📌 KRead more
Summary Assessment Under Income Tax Act – Section 143(1)
Summary Assessment is a computerized assessment of an Income Tax Return (ITR) without any human intervention. It is done under Section 143(1) of the Income Tax Act and is based purely on the details submitted by the taxpayer in the return.
📌 Key Features of Summary Assessment
1️⃣ Automated Processing
2️⃣ Matching with Departmental Records
3️⃣ Possible Adjustments
The tax department may make adjustments for:
4️⃣ No Scrutiny Involved
5️⃣ Time Limit for Summary Assessment
6️⃣ Outcome of Summary Assessment
After processing, the taxpayer receives an Intimation under Section 143(1), which may show:
✅ No changes in tax liability.
✅ Refund due (if excess tax is paid).
✅ Additional tax payable (if tax is underpaid).
📢 Final Thoughts
Summary assessment is a quick, computerized check of tax returns without human intervention. However, if discrepancies exist, taxpayers may receive demand notices, refund approvals, or scrutiny notices for further examination. Always ensure accurate reporting to avoid unnecessary issues! 🚀
Read:What are the time limits of issuing of Notices under Income Tax Act?
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