Self-Assessment Scheme

Self-Assessment Scheme

• Under this scheme, before filling income tax return, on assessee has to pay self-assessment tax.

• Self Assessment tax payable = Tax payable on total income as per return (-) Advance tax paid (-) TDS, if any + Interest payable for delay in furnishing the return for default or delay in payment of advance tax.

• W.e.f. 1/6/2004, the Income Tax Dept. has introduced a simplified system for payment of taxes called Online Tax Accounting Systems (OLTAS). The salient features of the new system are:

a)Four copy challans have been replaced by single copy as under: Challan No. 280 – For payment of Income tax (advance tax/ self assessment tax/ tax on regular assessment) and wealth tax by all categories of taxpayers. Challan No. 281- For Tax deducted at source Challan No. 282- For other Direct taxes.

b)Tax payer’s counterfoil: The challans have a taxpayer counterfoil at the bottom, which will be returned by the bank duly stamped and receipted.

c)Challan identification No.: The bank will give a stamped acknowledgment on the taxpayer’s counterfoil mentioning the name of the bank branch, the 7 digit BSR code of the bank branch the date of deposit (DD/MM/YY) and a running a serial no. of the challan (5 digit) collectively called the Challan Identification Number(CIN), Tax payers will mention the CIN on their Income tax returns

Self-Assessment Scheme

Precautions For Filling Tax Returns:

1.Write neatly and preferably in block letters. Write in ink preferably blue. Losses may be highlighted in red ink.

2.All parts of the return and verification should be filled-in neatly and properly, so that the department does not reject.

3.Alterations/cuttings, if any, should be duly authenticated.

4.Do not leave any column blank. Write Nil/Not Applicable(N.A), wherever necessary and not any mark or symbol.

5.Pay all ‘taxes due’ before furnishing the return.