Filing ITR after the deadline: Can you still opt for presumptive taxation under Section 44ADA?

Tax

The last date to file Income Tax Return (ITR) was 16th September 2025. Today's Ask Wallet Wise query decodes can one file ITR after the due date, particularly if one wants to opt for a presumptive taxation scheme under section 44ADA of the Income Tax Act.

Moneycontrol's Ask Wallet Wise initiative offers expert advice on matters of personal finance and money. You can email your queries to askwalletwise@nw18.com, and we will try and get a top financial expert to address your queries

I am working as a consultant for a company, and my income for the financial year 2024–25 was Rs 6,80,000, on which TDS under Section 194J was deducted. I also deal in shares. I could not file my ITR for last year by 16th September 2025. Which ITR form should I use? Can I opt for the presumptive taxation scheme under Section 44ADA now?

Expert Advice: The professional charges received by you as a consultant are taxable under the head “Profits and Gains of Business or Profession.”

The availability of the presumptive taxation scheme is not linked to filing your ITR by the due date. Since you have business income, you must file either ITR-3 or ITR-4, depending on whether you are eligible to declare your income under the presumptive scheme. If you qualify for the presumptive scheme, you can opt for it even after the due date for filing the return has passed.

Persons engaged in specified professions can opt for the presumptive taxation scheme under Section 44ADA, where 50% of the gross receipts are deemed to be your income, provided your gross receipts do not exceed Rs 50 lakh. A higher threshold of Rs 75 lakh applies if the cash component of your total receipts does not exceed 5%.

If your actual income is higher than 50% of your gross receipts, you must declare such higher income. However, if you claim that your actual income is lower than 50%, you are required to maintain books of accounts and get them audited.

The specified professions include doctors, lawyers, chartered accountants, company secretaries, cost and management accountants, engineers, architects, and individuals engaged in various capacities in the film industry. You can therefore opt for Section 44ADA only if you are engaged in one of these prescribed professions and can then file ITR-4. Otherwise, you will have to file ITR-3.

If you are not eligible for the presumptive scheme, you can claim the actual expenses incurred while performing your consultancy work. Note that merely because tax has been deducted under Section 194J does not automatically make you eligible to opt for the presumptive scheme.

Also note that, in addition to any interest payable for shortfall in advance tax or delay in filing your return, you are required to pay a late filing fee of Rs 5,000 if your total taxable income exceeds Rs 5 lakh. If your income exceeds the basic exemption limit but does not exceed Rs 5 lakh, the fee is restricted to Rs 1,000.

Disclaimer: The views expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.