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

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This query is : Resolved

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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)

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)

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)

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)

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)

03 August 2025 Report Grievance without filing ? Or pay interest, file return, and report grievance thereafter ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

03 August 2025 File complaint before filing ITR, with the screenshot of the interest demand.

Susan Dmello

Susan Dmello (Querist)

03 August 2025 Ok thank you very much Sir

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

03 August 2025 You are welcome.