Section 10A: Self Assessment Under Income Tax Act,1961

Last Updated On: Dec. 9, 2021, 11:58 p.m.
...

SELF ASSESSMENT UNDER SECTION 10A OF THE INCOME TAX ACT,1961

 

 

Provisions of Section 140A of Self-Assessment

 

The provisions of section 140A are given below—

 

1. Every person, before submitting a Return of Income under:

  • Section 139 or
  • Section 142(1) or
  • Section 148 or
  • Section 153A,

is under an obligation to make a self-assessment of his income and after taking in account the amount of tax, if any, already paid, pay the self-assessment tax, if due.

The assessee shall be liable to pay such tax together with interest and fee payable for any delay in furnishing the return or any default or delay in payment of advance tax.

 

2. Self-assessment tax so determined shall be deposited by the assessee before submitting return of income. From April 1, 2008, all corporate assessees and other assessees (who are subject to compulsory audit under section 44AB) will have to make electronic payment of tax through internet banking facility offered by authorized banks. Alternatively, these taxpayers can make electronic payment of tax through internet by way of credit or debit cards.

3. The proof of deposit should be submitted along with the return of income (i.e., BSR code of bank, Serial No. of challan, amount of deposit and date of deposit).

4. Where the amount paid by the assessee falls short of the aggregate of tax, interest and fee, as determined above, the amount so paid shall first be adjusted towards interest and fee payable and the balance, if any, shall be adjusted towards tax payable.

 

2. Procedure for Self-Assessment and Determination of Tax Liability of Self-Assessment :

 

(A) Tax Liability of Self-Assessment

Determination of the tax liability of self-assessment tax of return of income is explained in the following steps:

 

1. Compute the total income;

 

2. Calculate the tax payable on the total income at the rates in force;

 

3. Add surcharge, if applicable, on tax computed;

 

4. Add education cess @ 2% plus SHEC @ 1%;

 

5. From the tax payable, calculated under step (4), deduct the following:

  • any relief under section 89;
  • any relief of tax or deduction of tax claimed under section 90 or section 91 on account of tax paid in a country outside India;
  • any relief of tax claimed under section 90A on account of tax paid in any specified territory outside India referred to in that section;
  • any tax credit claimed to be set off in accordance with the provisions of section 115JAA (MAT credit) or section 115JD (AMT credit);
  • any tax deducted or collected at source; and
  • the amount of tax, if any, already paid under any provision of this Act e.g. advance tax;

 

6. Add interest and fee payable for the following to the Net-tax calculated at step (5):

i. Interest for late filing of return under section 234A computed on the amount of the tax on the total income as declared in the return as reduced by the amount of—

  • advance tax, if any, paid;
  • any tax deducted or collected at source;
  • any relief of tax or deduction of tax claimed under section 90 or section 91 on account of tax paid in a country outside India;
  • any relief of tax claimed under section 90A on account of tax paid in any specified territory outside India referred to in that section; and
  • any tax credit claimed to be set off in accordance with the provisions of section 115JAA or section 115JD.

ii. Interest for default in payment of advance tax under section 234B computed on amount equal to the assessed tax or the case may be, on the amount by which the advance tax paid falls short of assessed tax. For meaning of assessed tax see point 2 in box;

iii. Interest for deferment of advance tax (under section 234C);

iv. fee for delay in furnishing of return of income as prescribed under section 234F (applicable for return of income furnished for the assessment year commencing on or after 1.4.2018).

ABOUT LEGAL SUVIDHA

Copyright © 2013-2021 - All Right Reserved