How to pay income tax in india for self employed person !

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Roger Anand J

Self Empolyed

25 Points Joined March 2012

Hello CAClub Indians ,

I am Roger Anand. I am going to pay income tax for the first time . I am doing affiliate marketing as individual . There is no TDS detucted by paying company . I am the only responsibility for paying my tax . I really need the step by step process of paying tax online/offline .

Can anyone please correct or fill the info in the below steps ? I have highlightened the lines that I have doubts or I don't know that info or needed info is missing and also please correct me if I am wrong .

STEPS TO PAY INCOME TAX IN INDIA FOR SELF EMPLOYED PERSONS .

Step 1 : Calacution of Income tax:

https://law.incometaxindia.gov.in/DIT/Xtras/taxcalc.aspx

Step 2 : Detuction of Money from the Total money earned under rules 80C : ( Upto 1 lakh )

After investing amounts in LIC/FD/..etc , subtract 1 lakh from the total money earned in that financial year ( In my case it is Financial year 2011-2012 or Assessment year 2012-2013) and calculate the Income tax for the remaing money to be taxed .

https://law.incometaxindia.gov.in/DIT/Xtras/taxcalc.aspx

Step 3: Pay tax via online/offine:

ONLINE:

* Go to https://onlineservices.tin.nsdl.com/etaxnew/tdsnontds.jsp and select CHALLAN NO./ITNS 280

( In my case as self employed person ) ( IS THIS CORRECT.. ? )

* Then Slect Advance tax and pay the required tax online .
*What is the difference between advance tax and self assessment tax ?

OFFLINE :

( Don't know ) . Can anyone guide me please ?

Step 4 ; Filling Income tax return :

Go to https://incometaxindiaefiling.gov.in

* In IT return , I don't know what form I need to fill , since I am an self employed person . Can anyone tell me ?

* How to get a digital signature ? Please guide me .

* what is the due date for Filing IT return for Financial Year 2011-2012 ?

* What is the due date for Paying INCOME TAX for financial year 2011-2012 and what if I don't pay tax within that period ?

Thanks in advance for the answer and Thanks for reading :-)

- Roger Anand .

Replies (2)

Aashutosh Bhide

Article

104 Points Joined December 2010

hi ROGER ANAND

1) your 1st query ...... yes challan is 280 for Advance tax and self assessment tax.........

2) Advance tax means tax paid in advance for eg for FY 2011-12 if you pay before 15 march it will be termed as advance tax and after that it will be treated as self assessment tax........ Act says that self emploed people should calculate their estimated income and accordingly pay advance tax (if estimated tax amount is more than 10000) in 3 installment.... 1st installment on 15th september (30% of estimated tax) then next on 15th dec (60% of estimated tax) and remaining before 15th march....... if there is fault in payment of advance tax there is interest u/s 234B & 234C ( 1% p.m.).

3) offline method:- there is challan form. fill up form and make tax payment in banks accepting such payments and then after 3-4 days u will get receipt of challan

4) you are self employed person having business then u need to file ITR 4.

5) last date of filing your return is 31st july 2012 (if your gross receipt are more than 15 lac then last date of filing 30th sept, but then section 44ab will be applicable and your books need to be audited)

6)DSC is digital signature: when we file return through online mode we sign acknoweledgement and send it to banglore but if we use our DSC while filing income tax return then there no need to send signed acknoweledgement to banglore

7) u should pay yourtax before filing your return (preferably through advance tax i.e estimated basis) if u fail to pay tax then income tax department will charge interest on that.... also may be some penalties...........

Regards

Aashutosh