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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