TaxFinancial Glossary
Self-Assessment Tax
Definition
The balance tax payable after accounting for TDS deducted by your employer and advance tax already paid. If your total tax liability exceeds the tax already paid through these mechanisms, you must pay the difference as self-assessment tax before filing your ITR. Late payment attracts interest under Section 234A.
Why It Matters
Self-assessment tax commonly arises from capital gains, rental income, or freelance income that was not adequately covered by TDS or advance tax. Pay it before filing your ITR to avoid interest. The tax must be paid via challan (now online through the income tax portal) with the correct assessment year.