What Is Tax On Regular Assessment And How Is It Paid

Tax on regular assessment, also known as self-assessment tax, is the tax that is paid by individuals, Hindu Undivided Families (HUFs), firms, and companies after the end of the fiscal year, based on the final tax liability as determined by the income tax department. This is in contrast to advance tax, which is paid in instalments during the fiscal year based on estimated income.

The process of regular assessment begins with the filing of the income tax return, which must be submitted by the due date (usually July 31st) of the assessment year. The income tax return must include details of all income earned during the fiscal year, along with any eligible exemptions, deductions, and credits. The income tax department will then process the return and determine the final tax liability for the fiscal year.

If the tax liability exceeds the advance tax paid during the fiscal year, the taxpayer must pay the balance as self-assessment tax. Self-assessment tax can be paid online through the income tax department's e-filing portal or by visiting a designated bank branch. A challan, or receipt, must be obtained for the payment, which serves as proof of payment.

It's important to note that if the taxpayer fails to file the income tax return or pay the self-assessment tax by the due date, a penalty may be imposed. In addition, in case of any discrepancy between the return and the assessment, a notice may be issued by the income tax department and further action may be taken. # It's also important to note that in case of any refund due to the taxpayer, it will be processed after the regular assessment of the return.

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