De-jargoned: Self-assessment tax

You need to pay it if tax is due on your part pertaining to some income

Ashwini Kumar Sharma
First Published9 Jun 2015, 08:10 PM IST
iStockPhoto<br />

This year, it has been proposed that the last date for filing income tax be extended to 31 August. But don’t wait till then, especially if you owe the taxman. An assessee has to pay any balance tax before filing the tax return. For example, tax may be due on account of lesser tax deducted at source (TDS). This self assessment of due tax is called self-assessment tax (SAT).

Why pay SAT?

You need to pay SAT if tax is due on your part pertaining to some income. For instance, you may have forgotten to consider an income while paying the final instalment of advance tax. Or, maybe no TDS was deducted, or it was done so at a lower rate compared with the higher tax rate applicable to you. Say, you are a salaried person. You have a fixed deposit from which you earned 9,000 as interest, and made short-term capital gains of 15,000 from bonds. You didn’t disclose these incomes to the employer and, thus, this money was not taken into consideration for taxation. If you fall in the 20% tax bracket, you tax liability on these two incomes would be 4,944. However, since interest accrues on unpaid tax, it would be better that you pay as early as possible.

When to pay?

SAT is paid for the relevant financial year once it is over. But there is no specific date on or before which you have to pay SAT. Ideally, you should pay it as early as possible, without waiting till you file returns, to avoid paying interest on the tax amount.

How to pay?

You can pay offline at designated branches of banks empanelled with the income tax department, by filling up challan 280. Remember to collect the challan receipts and ensure that the acknowledgement has challan information number (CIN), the seven-digit basic statistical return code of the branch, and date of deposit.

You can also pay SAT online at Once you login, you will see an option “e-Pay taxes”. This will take you to the website of National Securities Depository Ltd, where you need to select “challan no./ITNS 280”. Then choose “(0021) Income tax (other than companies)”.

Fill in all the details—Permanent Account Number, name, address, and contact details. Select the assessment year for which you are making the payment. Then, under the head “type of payment”, select “(300) Self Assessment Tax”. Choose the bank from the drop down list through which you will pay. Enter the tax payable amount and pay through Net banking. Do remember that online payment is allowed only through Net banking and not by credit or debit cards.

On successful payment, a challan counterfoil will be displayed. This will have CIN, payment details and the bank’s name through which you paid. Keep a softcopy or printout of it. Usually, once SAT is paid, it will reflect in your Form 26AS (which is like a statement of all taxes paid) within 2-3 days of payment. If this does not happen, you can fill the details of the challan in your tax return.

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First Published:9 Jun 2015, 08:10 PM IST
HomeMoneyCalculatorsDe-jargoned: Self-assessment tax

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