Several studies have established that the difficulty in performing activities of daily living (ADL) among older adults can cause depression. This study takes the research forward by examining the contribution of the difficulty in performing basic ADL/instrumental ADL (BADL/IADL), both in quantity and individually, on major depression. Employing bivariate analysis and multivariable binary logistic regression on the Longitudinal Ageing Study in India Wave-1 (2017-18) data, the study assesses this relationship among the individuals aged over 60 years by cross-classifying them into four categories: young-old males, old-old males, young-old females, and old-old females. Results show that the prevalence of difficulty with individual ADLs was higher among old-old females and males than young-old. At the same time, the prevalence of major depression with the increase in the number of difficulties was higher among the young-old than the old-old. Additionally, inability to perform the BADLs led to a higher prevalence of major depression among older adults in comparison with the inability to perform IADLs. Further, impact of traditional gender roles, along with the psychological reactions and coping mechanisms, has been observed. Older males were more likely to have major depression if they faced problems with money management and doing work around the house, whereas older women were more likely if they struggled with preparing a meal and grocery shopping. Tailored interventions addressing the special needs of older adults in the context of gender-specific challenges with ADLs and mental health implications will provide for a more inclusive and supportive environment for the aging population.