NumberIQHQ
GlossaryDTWhat is Self Assessment Tax?
dt

What is Self Assessment Tax?

Self-assessment tax is the balance tax a taxpayer pays on their own, after TDS and advance tax, before filing the income-tax return.

Bare Law Reference: Section 140A, Income-tax Act.

Detailed Explanation

How it works

Computed under Section 140A, it covers any shortfall plus interest under Sections 234A/B/C, and must be paid before the return is filed to validate it.

⚖️
Income-tax Act 2025 update: Section 234A of the 1961 Act is now Section 432 under the new Income-tax Act 2025, effective 1 April 2026. Rates and thresholds discussed below remain applicable unless stated.

Frequently asked questions

What is self-assessment tax?

The balance tax paid by the taxpayer before filing the return, after TDS and advance tax.

When is it paid?

Before filing the return, including any interest under Sections 234A/B/C.

This content is for general guidance only and does not constitute professional advice. Tax law changes frequently — verify the current position and consult a qualified Chartered Accountant before acting. Last reviewed: June 2026.

Key Takeaways

  • Self-assessment tax is the balance paid before filing.
  • Covers shortfall plus 234 interest.
  • Paid under Section 140A.
← Back to all terms