Self Assessment Tax
Self Assessment Tax is the balance income tax paid by a taxpayer at the time of filing their Income Tax Return (ITR), after adjusting for TDS, TCS, and Advance Tax already paid during the year.
Understanding Self Assessment Tax
The Self Assessment Tax mechanism completes the tax-payment cycle. Through the year, TDS (by employer/banks/etc.) and Advance Tax (by you) cover most of the liability. At year-end, when you compute the actual liability while filing your ITR, any shortfall is paid as Self Assessment Tax.
Payment is via the income tax portal — Challan 280, type "Self Assessment Tax (300)". Once paid, the BSR code, challan number, and date go into the ITR. The portal validates payment in real-time before allowing ITR submission.
Why it matters
Always compute your Self Assessment Tax precisely before filing — under-payment leads to scrutiny, over-payment triggers refund delays. Reconcile against Form 26AS and AIS for all TDS/TCS/Advance Tax credits before computing the balance. Filing without paying Self Assessment Tax results in your ITR being treated as defective.
Example
An IT professional's total tax liability for FY 2026-27 is ₹3,40,000. TDS deducted by employer: ₹3,00,000. Advance Tax paid (small capital gain): ₹25,000. Total paid: ₹3,25,000. Self Assessment Tax: ₹15,000 — paid via Challan 280 in July 2027 before filing ITR.
An IT professional's total tax liability for FY 2026-27 is ₹3,40,000. TDS deducted by employer: ₹3,00,000. Advance Tax paid (small capital gain): ₹25,000. Total paid: ₹3,25,000. Self Assessment Tax: ₹15,000 — paid via Challan 280 in July 2027 before filing ITR.