Self-Assessment Tax
The balance tax you pay before filing your return, after accounting for TDS and advance tax already paid, to settle what you still owe for the year.
Self-assessment tax is the shortfall you pay, on your own initiative, before filing your income tax return, once you've added up TDS deducted by others, any advance tax you paid during the year, and your final computed liability. If those earlier payments already cover what you owe, there's no self-assessment tax to pay. If they fall short, the difference has to be cleared before the return can be filed, since an unpaid tax liability blocks successful filing.
It's distinct from advance tax mainly in timing: advance tax is paid during the financial year based on estimates, while self-assessment tax is paid afterward, once your actual full-year numbers are known and the return is being prepared. Interest under Section 234B/234C can still apply if the shortfall reflects advance tax that should have been paid earlier but wasn't.
This glossary entry is for general informational purposes only and does not constitute professional tax, legal, or financial advice. Rules and rates change, so consult a qualified Chartered Accountant for advice specific to your situation.