All About Self-Assessment of Property Tax

All About Self-Assessment of Property Tax

There are many ways to assess property tax. One of them is self-assessment, one of the easiest and less expensive methods. Let’s find out more.

The term self-assessment of property tax means any pending tax liability at the end of the financial year after calculating total taxable income and reducing deductions and taxes paid. Before filing ITR in India, the taxpayer has to pay a self-assessment tax. Taxpayers have the choice to pay this tax from Portal, the TIN-NSDL.

After evaluating total taxable income, reducing deductions and taxes paid, any pending tax liability at the end of the financial year is self-assessment. It is worth mentioning that the taxpayer must present a self-assessment of property tax before filing the income tax return. It is a regulation that must get maintained in the country for all its inhabitants.

Characteristics of self-assessment of property tax

It is to note that after the taxpayer has paid the advance, and if any tax charges need to be paid after the end of the financial year, they must be paid as self-assessment tax.

The taxpayer is obliged to pay the self-assessment of the tax before submitting the income tax return. In the case of taxpayers, the employer calculates and pays the fee for the taxpayer.

If the taxpayer is obliged to pay self-assessment tax, he will not be able to file an income tax return if he does not pay the self-assessment tax. The taxpayer must assess the self-assessment tax according to its terms and settle with the government.

There are many ways a taxpayer can settle their self-assessment—offline and online. It’s essential to follow both processes carefully, as any discrepancy can lead to significant issues in the return form and processing.

Why do we take into consideration property tax?

Property tax is one of the crucial sources of revenue for both urban local bodies and village local bodies to start development works. Self-assessment of property tax is vital for taxpayers and the economy.

In non-payment of the property tax, the relevant Urban Local Body (ULB) gets entitled to initiate legal action against defaulters. It includes the seizure and auction of the property.

Properties in ULBs across the state are divided into residential, commercial properties and vacant spaces. Property tax is determined based on self-assessment and declaration.

Generally, all ULBs across the state start property tax collection on 1 April. They give 5% relief for those who pay the property tax in the first month.

Self-assessment of property tax for salaried individuals

If the person is employed, the employer calculates the salary tax. The employer is required to deduct tax (TDS) from your salary income and deposit it with the government. If the tax liability calculation is correct and TDS is paid on time, no tax liability arises for salaried individuals.

However, it is very typical for salaried persons to become tax liable in the following situations.

  • If a salaried person has income other than salary (e.g. property rental income from house property or interest on fixed deposits etc.) and does not report it while calculating TDS,
  • If individuals have changed jobs and the employer has not considered the salary of the previous employer while calculating TDS.

Calculation Self-assessment tax

Self Assessment Tax is calculated by deducting all available tax credits, i.e. advance tax, TDS, MAT/AMT, TCS, credit and relief under section 87A/90/90A/91. The taxpayer must provide self-assessment tax along with interest and payment if it was assessed.

From the assessment year 2018-19, an additional fee is payable for the delay in filing ITR. A late filing fee of Rs 5,000 will get levied if the return is filed between 1 August 2018 and 31 December 2018. The charges will be Rs 10,000 on filing the return between 1 January 2019 and 31 March 2019.

Late filing charges will be Rs 1,000 for taxpayers whose taxable income is up to Rs 5 lakh. The fee can only get imposed if the taxpayer is obliged to prove his income. The tax, along with interest and payment, must get paid before the return can be viewed, and the tax payment information must be provided on the income tax return form.

To calculate the self-assessment of property tax, a taxpayer must follow the steps listed below closely:

Tax Payable on Total Income ——-
Add- Interest under Section 234A/234B/234C ——-
Minus- Relief under Section 90/90A/91 ——-
Minus – MAT Credit under Section 115JAA ——-
Minus – TDS/TCS ——-
Minus – Advance Tax ——-
Tax to be paid Total Amount

Calculation of interest for the self-assessment tax

If the tax amount is calculated before the assessment date, the interest can be estimated by including the advance tax amount (not refunded). The value should specify the consequences for the date up to the amount of the assessed tax.

A different way would be to deduct the self-assessment tax from the amount of advance tax to get recognised for the calculation from when the self-assessment tax adjustment needs to be made.

Procedure for paying self-assessment tax

The taxpayer can file the return online or physically at sanctioned banks. Here are the steps for online self-assessment tax amount:

Step 1: Log in to

Step 2: Check “e-Pay Tax” from the options available under the “Quick Links” menu label.

Step 3: Tick “continue to NSDL” and proceed to Website”, and a new Challan Variety Selection Website will launch.

Step 4: Select Challan No. ITNS 280 (Payment of Income Tax and Corporate Income Tax).

Step 5: Enter the tax relevant, PAN, assessment time, address and return type as “(300) Self-Assessment Tax”.

Step 6: Choose a return method; the taxpayer can return the self-assessed tax in two ways “Net Banking” and “Debit Card”.

Step 7: Enter the captcha key and check Continue.

Step 8: After approving the entering of data, the taxpayer will get directed to the bank’s payment gateway.

Step 9: After successful payment, a challan certificate containing CIN, fee details, BSR code, challan serial number and name of the bank through which the e-payment was made will be displayed.

Step 10: The challan is the proof of tax payment done. Download and keep the challan print for upcoming articles.

What is the offline process of filing self-assessment tax?

If a taxpayer is unable to make tax payments online, they have the option to pay offline by visiting their bank branch. A taxpayer can do their return offline by following the steps below.

  • Go to the bank branch and ask for the relevant tax payment challan form, in this case, Challan 280.
  • Supply the specifications requested in the form. The offline mode is comparable to that displayed on the online platform, i.e. TIN-NSDL portal. The functions needed in the form are also very identical.
  • Go to the desk of the concerned bank and present the completed Challan 280 along with the money. The taxpayer can refund the tax by cash or cheque. However, the bank may be hesitant to accept substantial cash returns; therefore, re-payment by check is desirable.

    It is also easier to track and keep proof of payment made by the taxpayer. If the taxpayer wants to make the payment by cheque, kindly name the check courtesy “Income Tax Department”.

  • The bank manager will accept the money with challan from the taxpayer and provide a voucher to them by cutting off a part of the challan, entering the payment aspects and assigning a stamp.
  • Once taxpayers have paid their taxes, they should safely keep the receipts as proof of payment. After paying the fee, he can claim up to ten days to appear in Form 26AS.

    A taxpayer’s income tax payment should be shown in his Form 26AS as ‘Advance tax’ or ‘Self-assessment tax’ or the type of tax given.

Who can pay self-assessment tax?

SAT (Self-Assessment Tax) is a tax paid by assessees if their tax liability is higher than the sum of advance tax or tax deducted at the source.

It can happen due to many causes, such as additional income earned during the year or tax deductions at a lower rate than the basic rate applicable to the assessee. If the assessee submits a return without paying the SAT, it will be treated as invalid.

Paying your tax on time is key to saving tax interest and not complying with tax laws. Payments are made by filling in the ITNS 280 tax form online or at the bank.

What is self-assessment tax with Form 26AS?

Usually, any fact (individual or company) deducted taxes must credit this value to the administration through the banks. Banks must upload these TDS functions to the central Tax Information Network (TIN) system.

Deductors would, side by side, record quarterly reports to TIN while implementing quarterly TDS entries. Based on specific circumstances, the central TIN system coordinates information related to tax payments before converting it into a comprehensive record for a unique PAN. It is Form 26AS.

The Form 26AS report mainly presents a consolidated picture of the total income received by the taxpayer as a deduction from multiple sources. It also includes the amount of TDS/TCS deducted from their assets and recognised by the Income Tax Department.


You must pay a self-assessment of property tax before filing the tax return. There are no special criteria for the payment date. Tax can be paid online in simple steps and calculated in a simple procedure. You need to calculate the final tax liability after deducting the amount of TDS from the income source and the advance tax payable for the financial year.

As the financial year ends, if there is any outstanding tax before filing your income tax return, the final amount you are liable to pay is called self-assessment tax. It is the decisive estimation before filing the tax return.

It is also known as the SAT. The date of payment of this tax is not specified, and the ideal time is to pay it for you as soon as possible without waiting for the tax return filing date to avoid interest on the tax.


How to apply for self-assessment of property tax?

  • Completed application form (Form-6)
  • Copy of proof of payment of property tax or leased land (if the building is constructed by demolishing an earlier structure or the land is assessed earlier for holiday tax)
  • Procedure to be followed for self-assessment of property tax

How to pay self-assessment tax?

There are two ways to do this:

  • Deposit in a bank with a tax challan or
  • Online payment using internet banking.

What if you do not pay the self-assessment of property tax?

If you do not pay this tax, you will not be able to file a tax return. In addition, after paying this tax, you must include counterfoil information in your tax return.

What is the self-assessment of property tax?

In self-assessment, the tax assessee pays tax after the end of the financial year. Before submitting an income tax return, every assessee must calculate the tax liability. If there are any tax arrears to be paid, they must be paid first before filing your income tax return.

Are there any easy steps to estimate Self Assessment Tax?

The measures for evaluating self-assessment tax are as follows: calculate the taxable amount payable from the individual’s absolute income. Further, increase the tax on interest payable under Section 234A/234B/234C. After adding the amount, deduct the relief under section 90/90A.

What are the deadlines for delivering your self-assessment of property tax return?

If you are filing a paper return, it must be delivered to HMRC by midnight on 31 October. If you choose to submit your tax return online, you have until midnight on 31 January.