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

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. 

Budget 2025 Updates

The new Income Tax Bill has been tabled by the Honorable Finance Minister in the Lok Sabha. It aims to simplification and better presentation of the provisions.

As per the budget 2025, the income up to Rs. 12,00,000 will have zero tax liability for the FY 2025-26 (AY 2026-27) under the new tax regime. Here's how:

The revised tax slabs under the new regime for FY 2025-26 (AY 2026-27) are as follows:

Annual Income Tax Slabs	income Tax Rates
Upto Rs. 4,00,000	NIL
Rs. 4,00,001 - Rs. 8,00,000	5%
Rs. 8,00,001 - Rs. 12,00,000	10%
Rs. 12,00,001 - Rs. 16,00,000	15%
Rs. 16,00,001 - Rs. 20,00,000	20%
Rs. 20,00,001 - Rs. 24,00,000	25%
Above Rs. 24,00,000	30%

With the revised tax structure, individuals earning up to Rs. 12,00,000 will have no tax liability due to the increased rebate of Rs. 60,000. For salaried individuals, the tax liability will be zero for incomes up to Rs. 12,75,000, due to the Rs. 75,000 standard deduction.

Note:

• The marginal relief on rebate is still applicable. 
• The rebate is not available for income that is taxed at special rates (e.g., capital gains under section 112A).

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.

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

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

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

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

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