When completing your tax return, the Total Deducted at Source (TDS) and advance taxes you've paid throughout the year will be subtracted from your ultimate tax liability. If the sum you've already paid falls short, you'll be required to settle the outstanding balance, termed as self-assessment tax.

This self-assessment tax is settled after the conclusion of the financial year but before submitting your income tax return. Timely payment is crucial to avoid incurring any penalties or interest. You can get help from an experienced self-assessment tax return accountant near you to simplify everything and avoid any mistakes.

Steps of the Self-Assessment Tax Calculation:

Step 1: Calculate your overall income, encompassing salary, dividend income, interest income, rental income, and other sources.

Step 2: Calculate your net taxable income by subtracting applicable deductions and exemptions from the total taxable income. These may include standard deductions, house rent allowances, health insurance premiums, and tax-saving investments like the Public Provident Fund (PPF), among others.

Step 3: Determine your tax liability based on the computed net taxable income.

Step 4: Offset your tax liability by deducting the tax amount you've already paid. This can include TDS, advance tax, interest income, and other applicable payments. The resulting amount represents your self-assessment tax obligation.

Why Contact Tax Consultants?
Engaging the services of a tax consultant is crucial for navigating the intricate landscape of taxation. These professionals play a pivotal role in ensuring strict adherence to tax laws while also strategizing to optimize financial outcomes.

A tax consultant can save you valuable time and money while mitigating the stress that is often associated with tax-related matters. Their importance extends to both individuals and businesses which make them an invaluable asset in managing and maximizing financial efficiency in today’s world.
To learn more about the process, contact the best tax consultants near you.