Did you know the government collects taxes on your income through three different means: TDSAdvance Tax Self-assessment taxIn this article we will delve into the details of self-assessment tax: how to pay it and how to download the challan for ITR filing. What is Self Assessment Tax?When filing your taxes, the TDS and advance taxes you paid during the year will be deducted from your final tax payable. If the amount you paid is not enough, you will need to pay the remaining balance to cover the difference, which is referred to as self-assessment tax.It is paid after the end of the financial year but before filing the income tax return. Paying this on time helps you avoid any penalty or interest.How to calculate self-assessment tax?To calculate self-assessment tax, follow these steps:Add your total income from all sources, such as salary, profession, business profits, capital gains, and other sources. Deduct all the allowable tax deductions and exemptions, such as investments made under Section 80C, 80D, and other deductions. Calculate tax on the balance amount as per the slab rates. This is your total amount of tax payable.Then use the following formula to calculate[(A+B) – (C+D+E+F)]Where, A = Total tax payableB = Interest as per section 234A/234B/234C C= Tax Relief under Section 90/90A/91D= MAT Credit under Section 115JAAE= TDS/TCS F= Advance Tax Note: Interest under Section 234A will be paid in case of late filing of income tax returns; Section 234B/234C: will only be paid in case of late payment of Advance Tax. How to pay self-assessment tax online?You can pay the Self Assessment Tax online using the following steps:Step 1: Visit the Income Tax e-filing portal and log in to your account.Step 2: Click on the "e-File" tab and select "e-Pay Tax" option.Step 3: Now, click on the new payment button.Step 4: Select ‘Income Tax’ from the list of options and click on ‘Proceed’.Step 5: Select the correct ‘Assessment Year’ and select ‘Self-Assessment Tax (300)’ from the dropdown menu and continue to the next step.Step 6: Enter the tax amounts here and continue to complete the payment.Step 7: Select the bank through which you want to make the payment and the preferred payment mode.After the payment is successful, you can download the Challan by clicking on the download button.How to download the self-assessment tax challanStep 1: Visit the Income Tax e-filing portal and log in to your account.Step 2: Click on the "e-File" tab and select "e-Pay Tax" option.Step 3: Click on “Payment History” and find the self-assessment challan that you want to download and then under the “Action” tab click on the three dots and then click on “Download”..

An Income Tax Return (ITR) is a form that enables a taxpayer to declare his income, expenses, tax deductions, investments, taxes, etc. The Income-tax Act, 1961 makes it mandatory for a taxpayer to file an income tax return under various scenarios. However, there may be various other reasons to file an income tax return even in the absence of requisite income, like carrying forward losses, claiming an income tax refund, for availing the VISA, loan from banking institutions, term Insurance, etc.E-filing refers to the process of filing an Income Tax Return (ITR) online, using the Internet. By accessing the new income tax portal using PAN-based login credentials, individuals can take advantage of a range of features that simplify the tax filing process. The Income Tax Department provides the facility for e-filing an income tax return. Before discussing the steps involved in e-filing an ITR, it is essential for a taxpayer to keep the following documents/information readily available for e-filing their ITR.PAN and AadhaarBank StatementsForm 16Donation receiptsStock trading statements from the broker platformInsurance policy paid receipts related to life and healthBank account information linked to PANAadhaar registered mobile number for e-verifying the returnInterest certificates from banksHowever, you can e-file your ITR on Cleartax by just adding your PAN.

Advance Tax Calculator – Calculate advance tax liabilityUse this intuitive tool from Cleartax to calculate your advance tax liability:The due date for the First instalment of advance tax is 15th June 2024 for FY 2024-25.What is Advance Tax?Advance tax is the income tax that is paid in advance instead of lump sum payment at year end. It is the tax that you pay as you earn. These payments have to be made in instalments as per due dates provided by the income tax department.  Who Should Pay Advance Tax?Salaried individuals, freelancers and businesses– If your total tax liability is Rs 10,000 or more in a financial year, you have to pay advance tax. The advance tax applies to all taxpayers, salaried individuals, freelancers, and businesses.Senior citizens– People aged 60 years or more who do not run a business are exempt from paying advance tax. So, only senior citizens (60 years or more) having business income must pay advance tax.Presumptive income for businesses–The taxpayers who have opted for the presumptive taxation scheme under section 44AD have to pay the whole amount of their advance tax in one instalment on or before 15 March.

Taxpayers filing their return after the due date will have to pay interest under Section 234A and a penalty under Section 234F.  When is the last date to file ITR?ITR filing last date for Financial Year 2023-24 (AY 2024-25) is July 31, 2024. However, if you miss filing within the due date, you can still file a belated return before December 31, 2024.Click here to file income tax returnWhat are Financial Year (FY) and Assessment Year (AY)?The return you will file in the upcoming year is for the income you earned in FY 2023-24, i.e. for the income earned between 1 April 2023 and 31 March 2024. The assessment year is the review year for FY 2023-2024, where you file your returns and declare your returns by declaring all the incomes, exemptions, deductions, losses etc., already made or incurred during the year for tax assessment. . For the income earned during the FY (here FY 2023-24), the assessment year would be the immediately next year, i.e.

The income tax slabs are different under the old and the new tax regimes. Further, the slab rates under the old tax regime are divided into three categoriesIndian Residents aged < 60 years + All the non-residents 60 to 80 years: Resident Senior citizensMore than 80 years: Resident Super senior citizensWhat Is an Income Tax Slab?In India, the Income Tax applies to individuals based on a slab system, where different tax rates are assigned to different income ranges. As the person's income increases, the tax rates also increase. This type of taxation allows for a fair and progressive tax system in the country. The income tax slabs are revised periodically, typically during each budget.

What is the biggest benefit of putting your wife's name on a home purchase? Getting along with her, making the family happy, or standing out in a patriarchal society? Yes, there is all that, but the cherry on top is that you may reduce the property value by 1% to 2% to save tax.As a part of social efforts, several state governments provide women buyers with a discount on stamp duty. When you purchase a property and have it transferred into your name, you must pay stamp duty to the state government. So what are the benefits of having a property purchased by husband in the name of wife? Let’s discuss this in detail.Income Tax Benefits for Husbands Purchasing Property in the Name of WifeThere are several tax benefits to purchasing a home with your wife as sole owner or co-owner. One of them is the tax deduction under Section 80C. It includes income tax deductions of up to ₹1.5 lakh every financial year on principal repayment for a home loan. Both you and your wife can claim this benefit if you are both co-owners of the same property and your wife has a separate source of income. The benefits of taxes on property purchased by the husband in the name of the wife will differ according to their ownership stakes.Both you and your wife can also deduct the entire amount of interest paid on a house loan if the purchased property is rented out.

Here's a step-by-step guide on how to make tax payment on the Income Tax Portal without logging in:Step 1: Go to the Income Tax Portal and Navigate to the 'e-Pay Taxes' SectionVisit the Income Tax Portal at https://www.incometax.gov.in/On the left side of the home page, there is a 'Quick Links' section, click on the 'e-Pay Tax' option. You can also search for 'e-Pay Tax' in the search bar.Step 2: Enter PAN/TAN and Mobile NumberOn the ‘e-Pay Tax’ page, input your PAN and re-enter to confirm it. Then, provide your mobile number and click ‘Continue’.Enter the 6-digit OTP received on your mobile number and 'Continue'. Step 3: Select the correct Assessment Year and Payment TypeSelect the first box labelled as ‘Income Tax’ and click on ‘Proceed’ From the ‘Assessment Year’ dropdown menu, select 2023-24Under the ‘Type of Payment’, select ‘Self-Assessment Tax (300)’ and click on 'Continue'.Step 4: Enter Tax Payment DetailsMake sure to input the payment amounts correctly under the appropriate category. You may refer to the pre-filled challan on ClearTax to obtain all the necessary amounts.Step 5: Select the Payment MethodSelect the payment method and the bank to make the tax payment and press 'Continue'.Payment can be made using internet banking, debit card, credit card, RTGS/NEFT, UPI or you can choose to pay at the bank counter.Step 6: Verify Payment InformationAfter you click on 'Continue', there will be an option to preview the challan details.Double-check the payment information you entered to ensure it is accurate, then click on the 'Pay Now' option at the bottom of the page to make the payment.If you need to modify the details, click on 'Edit'. Step 7: Submit the PaymentTick the checkbox to agree to the Terms and Conditions after reading them and click on 'Submit To Bank'.Step 8: Receive Payment ConfirmationYou will receive a confirmation once your tax payment has been successfully submitted.Note: Remember to download the challan as you will need the BSR code and Challan number for completing the return filing process.Step 9: Add details on ClearTaxNow, resume your tax filing on ClearTax. Click on ‘Add Paid Tax Details’.  Enter the Tax amount paid along with other details from the challan like date of payment, BSR Code, Challan Serial No. You can now proceed to ‘e-file’ and ‘e-verify’ your return..

As per the Income Tax Act, it is mandatory to file your income tax returns on time. Failure to do so can attract hefty penalties and you could face a hard time getting a loan, visa approval, etc. On the other hand, timely filing of your Income Tax Return (ITR) opens the door to various advantages. Let us understand the consequences of late filing your ITR.What is the importance of filing ITRs?As a responsible and compliant citizen, you must file tax returns. The following is the list of advantages of doing so:When you apply for a loan to buy a house, car, or for medical treatment, the past three years' tax returns are necessary.Submitting your tax return helps in getting quick visa approvals. Some foreign embassies like Australia, UK, USA, and Canada require previous year's tax returns for visa processing.As per Section 281 of the Income Tax Act, if you are involved in foreign or high-value transactions, such as transferring assets, you need to provide a tax clearance certificate (ITR).Filing tax returns allows you to claim tax refunds if you are eligible.Tax return documents are important as they serve as proof of your income and address.

Filing your tax return can be one of the most stressful tasks on your daily agenda this year. Moreover, waiting until the very last minute causes additional worry that you can avoid. The deadlines are approaching and if you haven't already prepared your paperwork, now is the time. However, while doing so, always remember the commonly made mistakes as they can get you in big trouble.It’s easy to become lost in the Income Tax’s vast ocean of provisions, sections, deductions and rules. Therefore, we have compiled a list of some of the most common errors which the majority of taxpayers should avoid. What Are the Common Mistakes People Make While Filing Tax Returns?Here is a list of some of the common mistakes that you can avoid while filing Income Tax Returns:Mentioning Incorrect Personal or Corresponding DetailsYou should always give special attention at the time of mentioning your Aadhaar, PAN, address, and other contact details.

What is HRA (House Rent Allowance)?House Rent Allowance (HRA) is an allowance (part of CTC) given by your employer to help you cover the cost of living in a rented accommodation. Is HRA taxable?HRA is a part of your salary income and therefore, it is initially considered as your taxable income. However, if you live in a rented accommodation, you can claim a tax exemption either – partially or wholly under Section 10(13A) of the Income Tax Act. This is popularly known as HRA exemption. If you don’t live in a rented accommodation, this allowance is fully taxable.Please note that the tax exemption of house rent allowance is not available in case you choose the new tax regime. HRA for Self-Employed IndividualsIndividuals who are self-employed cannot claim HRA but they can avail tax deductions towards the rented accommodation under Section 80GG.HRA for Salaried Individuals Section 10 (13A), rule number 2A of the Income Tax Act allows salaried individuals to claim exemptions for House Rent Allowance (HRA). As this allowance is a significant part of an individual's salary, it is important to follow the company's policies regarding the claiming of HRA.How to claim HRA exemption?To claim HRA exemption, you must meet the following conditions:Live in rented accommodationReceive HRA as part of your CTCSubmit valid rent receipts and proof of rent payments.The HRA exemption calculation will depend on various factors like salary, rent paid, HRA received by the employee and city of residence of employee.How to calculate HRA Exemption?The lowest of the following amounts can be claimed as HRA exemption:Actual HRA received 50% of [basic salary + DA] for those living in metro cities (Delhi, Kolkata, Mumbai or Chennai)40% of [basic salary + DA] for those living in non-metrosActual rent paid (-) 10% of [basic salary + DA]HRA CalculatorTry out our free HRA calculator to determine your HRA exemption.