Pay online self assessment tax and advance tax

Dear Friends, today we talk about What is the “Self Assessment Tax and Advance Tax” in India and we will know how to pay online self assessment tax and advance tax. Self assessment tax which we are finalizing the tax based on actual once the financial year completed and deduct whatever advance tax paid and balance need to be paid before filling the return.

In other words, Self Assessment tax means any balance tax paid by the assesses on the assessed income after taking into account the TDS and Advance tax before filing the Return of income. After reading this article how to pay online self-assessment tax and advance tax your time and headache will be reduced. We already discuss about all Indian tax in previous post.

How to pay online self assessment tax and Advance Tax

It is very necessary to pay online self assessment tax and advance tax because these will protect you from extra interest and penalty if not deposited tax in to Govt. account. All taxable Individuals and Corporate are liable to pay Self Assessment Tax. The Tax liability is computed after taking into accounts the various deductions & exemptions. If the Total Tax Paid (total of TDS & Advance Tax) is less than the Total Tax Liability, it means we owe the balance tax to the government. This has to be paid as Self Assessment Tax.


Both are one of the same, advance tax is the income tax which we are paying in advance for the particular assessment year in installment this is based on projected income for the particular financial year. Advance tax, it refers to paying a part of your yearly taxes in advance. Advance tax is the income tax payable if your tax liability exceeds Rs 10,000 in a financial year. Advance tax should be paid in the year in which the income is received. Hence, it is also known as the ‘pay-as-you-earn’ scheme.

Advance tax is applicable when an individual has sources of income other than his/her salary. For instance, if one is earning through capital gains, interest on investments, lottery, house property or business, the concept becomes relevant. Any rebate due fetches you an interest of 0.5 per cent every month, or, six per cent annually, as in the case of an income tax refund. However, if you don’t pay the advance tax on time, you’ll be charged one per cent every month, or, 12 per cent a year.

Must Read: Meaning of Tax and Types of Tax in India

Who should file it?

If you are salaried, you need not pay advance tax as your employer deduct tax at source (TDS). However, you still need to file it if you have other sources of income, increasing your liability to more than Rs 10,000. Professionals (self-employed) and businessmen will have to pay taxes in advance as, given their business income, the liability can be huge. The same goes for companies and corporate.

When File Advance Tax?

Advance tax or self-assessment taxes have to be paid on the 15th of September, December and March, in installments of 30 per cent, 30 per cent and 40 per cent, respectively, for non-corporate. Corporate’s need to pay it on the 15th of June, September, December and March. While employers deduct TDS on salaries, advance tax is paid on income that has not been subjected to TDS.

How to file it?

You can pay advance tax using the tax payment challan at the bank branches impaneled with the Income Tax (I-T) department. It can be deposited with the Reserve Bank of India, State Bank of India, ICICI Bank, HDFC Bank, Indian Overseas Bank, Indian Bank, and other authorized banks. There are 926 branches in India that can accept advance tax payments. You could also pay it online through the I-T department or the National Securities Depository site.

Note: Once you have paid the Self Assessment Tax, it will reflect on your Form 26AS within 2-3 days of making the payment.

What is the procedure for paying Advance Tax?

Direct Mode of Payment:
Self Assessment Tax can be paid by filling a Tax Payment Challan, ITNS 280. Challan, at designated branches of banks impaneled with the Income Tax Department.

Online Mode of Payment :

Assesses could pay Self Assessment Tax Online through the NSDL website, or Click on this link :
Then select 280 challan Select Tax Applicable as (0021)
Select Assessment Year (eg. If FY 2011-12, then AY is 2012-13)

Then select type of payment as (300) Self Assessment Tax, and fill rest details.

Must read: Service Tax in Tally

I hope you like this how to pay online self assessment tax guide. Give your important suggestions in comment box. Thanks.


  1. Sir I My data shown in Data folder but not shown in TallyERP9. Can you help me about it. waiting

    1. Hi Rahul,

      First check… if your Data folder created at another drive or hidden from your side. You can also search “Data” folder in your local hard drives. After that your problem will be solved. If you steal feel the same issue then please write us.

  2. I have a question: the TDS by my employer(s) has fallen about Rs. 30000 short of what it actually should have been. How much time do I have before which I can pay this amount without interest? Can I pay this while filing ITR, without having to pay interest/fine ?

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