What is Self Assessment Tax? How to pay Self-Assessment tax?
Hey,
There are certain tax-terms or simply certain taxes, that may seem obvious from outside. But they are important to be defined and learned so they aren’t missed out on.
After reading about this, you may think to yourself that ‘this was obvious’, but you’ll be surprised how many people would evade taxes, if this didn’t exist.
One such term is: the Self Assessment Tax.
What is Self Assessment Tax?
In layman language, self assessment taxes are simply any taxes that you haven’t already paid — so — pending taxes at the end of the financial year.
Hence, self assessment tax is any pending tax liability at the end of the financial year after calculating total taxable income and subtracting deductions & taxes paid.
One thing to note here, especially if you’re new to paying taxes is that youmust pay self assessment tax before you can file an ITR in India.
How to pay Self-Assessment tax?
If you’re looking to pay your self assessment taxes, there are two ways you can go about it:
– Deposit the tax amount in a bank with tax challan or
– Online payment using Net banking facility from the TIN-NSDL portal.
In parting, let’s just understand that if you don’t pay this tax, you will not be able to file your Income Tax Return. Moreover, after the payment of this tax, you also need to provide counterfoil information in your return.
