ITR-3 ignores Section 211 (1) (b) for Professionals u/s 44ADA

This query is : Resolved

Quick Summary

A professional filing ITR-3 for AY 2025-26 under Section 44ADA is incorrectly being charged interest for advance tax deferment. Despite paying advance tax in full by March 13th, which should exempt them from instalment requirements, the ITR-3 software calculates interest on the entire income, including the presumptive income. This appears to be a bug, as interest under Section 234C should not be charged on presumptive income for the first three quarters. It's recommended to report this as a grievance before filing or after payment, providing evidence of the incorrect calculation.

Susan Dmello

Susan Dmello (Querist)
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03 August 2025 Assessee is filing a return for A.Y. 2025-26 using ITR-3 with professional income u/s 44ADA. The assessee has paid the entire advance tax in a single instalment on 13th March 2025. The ITR-3 has calculated interest payable for deferment of advance tax u/s 234 C although he is fully compliant with section 211 (1) (b) c which exempts him from paying in 4 instalments unlike other assessees. Is there a bug in ITR-3 ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 August 2025 Whether there is any other incomes like capital gains (other than income declared u/s 44ADA) ?.
Whether advance tax was fully paid over that income as per installments?

Susan Dmello

Susan Dmello (Querist)
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03 August 2025 Yes there is other income for which advance tax was paid in normal instalments. A back of envelope calculation reveals that interest u/s 234C is being calculated for the total income including 44ADA

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 August 2025 No; interest on income under presumptive scheme should not be charged for first three quarters. In that case it should be reported under 'Grievance.'

Susan Dmello

Susan Dmello (Querist)
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03 August 2025 Report Grievance without filing ? Or pay interest, file return, and report grievance thereafter ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 August 2025 File complaint before filing ITR, with the screenshot of the interest demand.

Susan Dmello

Susan Dmello (Querist)
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03 August 2025 Ok thank you very much Sir

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 August 2025 You are welcome.