Navigating the Tax Maze: Your TDS to Self-Assessment Roadmap

If you are required to pay income tax, you can easily file your own forms. The government has made the procedure easier by collecting taxes in three different ways: TDS, advance tax, and self-assessment tax.

TDS, or Tax Deducted at Source, is a small proportion of your income tax that is deducted from your salary, rent, or fees.

Advance Tax is income tax paid in advance, in quarterly installments throughout the year.

The pending balance amount to be paid after TDS and advance tax payments is referred to as Self-Assessment Tax. Let us go over this in detail.

What Exactly Is Self-Assessment Tax?

‘I’ve already paid TDS and advance tax on my income tax; why should I pay more?’ question: valid question; nevertheless, in the rush to pay advance tax, it is probable that some income was overlooked inadvertently.

On improper or insufficient TDS deductions, self-assessment in income tax is also payable. Alternatively, you may have gotten unanticipated returns on your assets or more money from other sources.

When the total tax paid through TDS or advance tax is less than the actual tax liability, self-assessment tax is triggered. It is critical that you pay this, no matter how modest the amount appears to be, in order to prevent excessive fines.

How Do You Pay Your Self-Assessment Tax?

After calculating your self-assessment tax, you can pay it online or in person at your bank using a particular form.

Online self-assessment tax payment:

  1. Navigate to and sign in using your PAN or UID (Aadhaar) number.
  2. On the homepage, select “e-pay tax” from the “e-filing” menu.
  3. Select “New Payment” under the pay e-tax option.
  4. Select “Proceed” from the “Income Tax” page.
  5. Select “Self-Assessment Tax (300)” as the form of payment and click “Continue” after adding the applicable assessment year from the drop-down menu.
  6. Click “Continue” after entering the tax liability and any other relevant information.
  7. Click “Continue” after selecting the preferred way of payment.
  8. Make the necessary payment.

Self-Assessment Tax Payment at a Bank:

  1. Go to the Income Tax website and print tax challan 280:
  2. Enter your PAN, assessment year, residential address, email address, and phone number.
  3. Submit the completed challan form, along with the income tax self-assessment tax payment, to the bank in person and obtain the stamped receipt.

Remember to save a copy of the self-assessment tax payment receipt in case the Form 26AS statement does not reflect the facts immediately.

Avoid these mistakes when preparing your tax return for self-assessment

When we file our income tax self-assessment tax return, we might make certain mistakes. The filing deadline is July 31st, but most people put it off until the last minute, and filing in a rush can result in problems.

Here is a checklist you may use to ensure that you file your self-assessment tax return correctly, whether you do so online or in person.

  1. Make sure you’re filling out the correct form:

This is the first and most significant stage because there are many different forms based on the nature of the income or the taxpayer’s category.

Submitting an incorrect ITR form results in a notice from the IT department and the need to redo the process within a certain deadline. That’s two jobs!

  1. Mention the correct evaluation year:

Confused about the differences between FY (Financial Year) and AY (Assessment Year)? The fiscal year is 2023-24 for FY 2022-23. Writing the wrong AY will result in unneeded fines.

  1. Include all pertinent information:

Your name, address, date of birth, PAN number, and other information should match the information on your PAN card. If you expect a refund, make sure you include the correct bank account number and IFSC code. Ensure that all details are written in the format specified.

  1. Even if TDS is deducted, file your returns:

You may believe that because TDS is deducted from your pay or rental income, you do not need to complete a self-assessment tax return. However, anyone earning more than Rs.2.5 lakhs per year is required to file income tax.

  1. Identify all sources of income:

Aside from your employment or salaried income, you must disclose any savings account interest, fixed deposit interest, rental income from residential property, income from short-term capital gains, and any other income source, whether taxable or exempt.

  1. TDS Reconciliation with Form 26AS:

Remember to verify Form 26AS before paying your income tax self-assessment tax, which covers all of your income, TDS, advance taxes paid, and more. If your company deducts TDS from your salary, compare the TDS figures on Form 16 with the Form 26AS given by the business. Any inconsistencies could result in a loss of tax deduction credit, a smaller refund, or paying extra taxes. While you can claim up to Rs 1.5 lakh in deductions for specific investments and costs in a fiscal year, be clear about which expenses are qualified and which are not.

  1. HRA advantages:

To claim HRA benefits, you must provide your firm with your rent receipts as well as your landlord’s PAN information.

  1. File and validate your self-assessment tax return on time:

Once you’ve finished completing your taxes online, make sure to double-check them. You can do it online using your bank account, Aadhaar card, or phone. If you are unable to do it online, send it by mail within 120 days.


To sum it all up, paying income tax is straightforward and can be accomplished in three ways: TDS, advance tax, and self-assessment tax. When you realize you haven’t deducted enough TDS or have overlooked some revenue, you must pay a self-assessment tax. You can pay it online or in person at a bank. When submitting your taxes, be cautious to avoid mistakes and double-check your return. It is critical to complete it on time in order to have a stress-free tax season.