Self Assessment Section 140A - income tax act, 1961

Assessment means to assess the income of the taxpayer i.e. to decide the income and tax liability of the assessee on the basis of return filed, information gathered or to the best of judgment of income tax department. It begins with self-assessment i.e. assessment by the taxpayer himself.

SELF ASSESSMENT SECTION 140A INCOME TAX ACT 1961 |  SELF ASSESSMENT TAX IN INDIA UNDER SECTION 140A: RETURN OF INCOME AND ASSESSMENT PROCEDURE

SELF ASSESSMENT SECTION 140A

In self-assessment, taxpayer itself is responsible or liable to determine its taxable income, tax liability and to pay tax accordingly. Provision of section 140A is as follows - 

(1) Where any tax is payable (after deducting relief, rebate, advance payment of tax or tax deducted or collected at source or MAT or AMT credit, if any) on the basis of return furnished the taxpayer is required to pay such tax before filing the income tax return.

Taxpoint: A return furnished without paying self-assessment tax & interest, if any, shall be treated as defective return.

(2) If any interest is payable for delayed filing of return (under section 234A) or default in payment of advance tax (under section 234B) or for deferment of advance tax (under section 234C) or fee (under section 234F) is payable for filing return after due date, then such interest or fee should be paid along with self-assessment tax. 

Note: While calculating above interest for the purpose of self-assessment section 140A, tax on the total income of the taxpayer declared in the return shall be considered. 

(3) Where the amount paid by the taxpayer falls short of the aggregate of tax, interest and fee, the amount so paid shall first be adjusted towards fee and thereafter towards interest payable and the balance, if any, shall be adjusted or fixed towards tax payable.

(4) After assessment, any amount paid under this section shall be deemed to have been paid towards such assessment. 

(5) If a taxpayer fails to pay whole or any part of such tax or interest or both in accordance with the provisions of section 140A, he shall be deemed to be a taxpayer in default.

FOR THIS PURPOSE, TAX AND INTEREST SHALL BE CALCULATED AS FOLLOWS

Find out income tax, surcharge, health and education cess    ••••

Add: Interest--

• Under section 234 for late submission of return of income    ••••

• Under section 234B for default in payment or non-payment or short payment of advance tax    ••••

• Under section 234C for non-payment or short payment of different instalment of advance tax     ••••

Total tax on interest    ••••

Less: Advance tax, TDS, TCS, MAT, AMT credit    ••••

Self assessment tax payable under section 140A     ••••