14 Aug 2018

Self Assessment Tax

Finance feed by:

CA Mukund Garodia
B.com (Hons),CA,CAIIB
CA in Job
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   •    15 Year 2 Month  experience

Individuals are expected to compute the final liability of income tax after deducting the TDS amount from the source of income as well as the advance tax payable for the financial year. When the year is almost over, if there is any tax pending before filing an individual’s income tax return, a final amount that the individual is liable for is calculated is known as the self-assessment tax. This is the final calculation before filing the tax return.

Self Assessment Tax payable by an individual related to income from other sources. For example, if an individual has missed out on an income when making the final payment in the form of installment of their advance tax, etc. It could also be a possibility that TDS was not deducted or done at a lesser rate against the higher tax rate applicable on your income tax filing.

Self-assessment tax is paid for a particular financial year end. There is no specification on the date of payment of this tax. The ideal time is to pay it as soon as possible, without waiting for the tax returns filing date, as a way to avoid payment of interest on the tax amount.

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