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What is Self Assessment Tax: How To Pay, Calculate And Download Challan Online

By Ektha Surana

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Updated on: May 24th, 2024

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3 min read

Did you know the government collects taxes on your income through three different means: 

  • TDS
  • Advance Tax 
  • Self-assessment tax

In this article we will delve into the details of self-assessment tax: how to pay it and how to download the challan for ITR filing

What is Self Assessment Tax?

When filing your taxes, the TDS and advance taxes you paid during the year will be deducted from your final tax payable. If the amount you paid is not enough, you will need to pay the remaining balance to cover the difference, which is referred to as self-assessment tax.

It is paid after the end of the financial year but before filing the income tax return. Paying this on time helps you avoid any penalty or interest.

How to calculate self-assessment tax?

To calculate self-assessment tax, follow these steps:

  • Add your total income from all sources, such as salary, profession, business profits, capital gains, and other sources. 
  • Deduct all the allowable tax deductions and exemptions, such as investments made under Section 80C, 80D, and other deductions. 
  • Calculate tax on the balance amount as per the slab rates. This is your total amount of tax payable.
  • Then use the following formula to calculate

[(A+B) – (C+D+E+F)]

Where, 

A = Total tax payable

B = Interest as per section 234A/234B/234C 

C= Tax Relief under Section 90/90A/91

D= MAT Credit under Section 115JAA

E= TDS/TCS 

F= Advance Tax 

Note: Interest under Section 234A will be paid in case of late filing of income tax returns;  
Section 234B/234C: will only be paid in case of late payment of Advance Tax. 

How to pay self-assessment tax online?

You can pay the Self Assessment Tax online using the following steps:

Step 1: Visit the Income Tax e-filing portal and log in to your account.

Step 2: Click on the "e-File" tab and select "e-Pay Tax" option.

income tax e-filing portal

Step 3: Now, click on the new payment button.

new payment

Step 4: Select ‘Income Tax’ from the list of options and click on ‘Proceed’.

income tax

Step 5: Select the correct ‘Assessment Year’ and select ‘Self-Assessment Tax (300)’ from the dropdown menu and continue to the next step.

Self-Assessment Tax (300)

Step 6: Enter the tax amounts here and continue to complete the payment.

tax amount

Step 7: Select the bank through which you want to make the payment and the preferred payment mode.

payment mode

After the payment is successful, you can download the Challan by clicking on the download button.

How to download the self-assessment tax challan

Step 1: Visit the Income Tax e-filing portal and log in to your account.

Step 2: Click on the "e-File" tab and select "e-Pay Tax" option.

Step 3: Click on “Payment History” and find the self-assessment challan that you want to download and then under the “Action” tab click on the three dots and then click on “Download”.

Frequently Asked Questions

What is the due date to pay the self-assessment tax?

There is no specific due date for the payment of self-assessment tax. But if you don't pay it before filing your return, the income tax department may send you a notice or intimation. You may also have to pay interest or a penalty.

Can we avoid paying penalties and interest if we partially pay self-assessment tax?

Taxpayers who miss paying a part or full amount of the self-assessment tax will be considered as defaulters (‘assess in default’). The income tax officer will decide how much penalty they have to pay, but it won't be more than the tax payable amount.

What is the difference between self-assessment tax and advance tax?

Self-assessment tax and advance tax are frequently mistaken for each other. However, they are very different. Advance tax is to be paid in advance in the year in which you earn the income if your tax liability after considering TDS is over Rs 10,000. Whereas the self-assessment tax is to be paid in the next year before, i.e. the assessment year, before filing the tax return.

Can I pay self-assessment tax in instalments?

Yes, you can pay self-assessment tax in instalments. But remember to make the complete payment before filing the ITR.

Can I pay self-assessment tax offline? How to pay self-assessment tax offline?

Yes, you can pay self-assessment tax offline. Follow the below steps:

  1. Visit your bank branch and request a Challan 280 form
  2. Fill in the required details and submit it at the bank's counter along with the payment.
  3. After payment, the bank official will provide you with a receipt. Keep this receipt safe as proof of payment. 
  4. It may take up to 10 days for the payment to reflect in your Annual Information System(AIS). The payment should be listed as 'Self-assessment tax' in your AIS.
What to do if Self-assessment tax is paid but not reflecting in prefilled details?

As per the normal process, it takes 3 to 4 days for different banks to provide information to the department. Post that, it gets prefilled in the Tax-returns/Pre-filled JSON. Taxpayer may opt to wait for required time-period for auto reflecting details of the Taxes paid in ITR. Alternatively, in such cases where taxpayer has already filled in additional details over and above the pre-filled details, such payment details can be entered manually after clicking on ‘Add Details’ link for Advance Tax and Self-assessment Tax Payment details under Schedule “Taxes Paid”.

What is the timing of E-Payment of taxes?

All direct taxes can be deposited any time (24X7) electronically (E-payment mode) by using internet banking or debit card.

Can I make my tax payments offline?

Yes, you can make your tax payment over the counter or through RTGS / NEFT at your bank branch. Using the Make payment offline service, you will be able to download a Challan Form / Mandate Form for the challans already generated and saved under the Generated Challans tab.

Is there a time limit to pay tax after challan has been created?

Yes, You are required to make the tax payment within 15 days from generation of challan (i.e. 15 Days from the date of CRN generation). 

Can I pay through cash? Is there any limit on cash transaction?

Yes. Cash transaction is allowed for an amount up to ₹10,000/- per CRN.

About the Author

Multitasking between pouring myself coffees and poring over the ever-changing tax laws. Here, I've authored 100+ blogs on income tax and simplified complex income tax topics like the intimidating crypto tax rules, old vs new tax regime debate, changes in debt funds taxation, budget analysis and more. Some combinations I like- tax and content, finance & startups, technology & psychology, fitness & neuroscience. Read more

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