Income Tax Business Code: A Complete List for Taxpayers

The Income Tax Department has established business codes that are used in ITR filing to identify the type of business or occupation of a taxpayer. They simplify assessments, guarantee accurate income classification, and uphold tax law compliance. Making the right code choice is essential since a wrong code could result in discrepancies, scrutiny, or inaccurate taxable income reporting. Therefore, taxpayers should be aware of the business code applicable to their business (or profession) to avoid any glitches and issues down the line.

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Table of Contents

Understanding Income Tax Business and Professional Codes

Applicability of ITR Business Code

New Income Tax Business and Professional Codes Introduced in FY 2024-25

Income Tax Business Code List

Significance of Selecting the Appropriate Business Code for ITR Filing

Steps to Choose the Correct Income Tax Business Code

Common Business Code Selection Mistakes and Their Impact

Conclusion

Frequently Asked Questions

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Understanding Income Tax Business and Professional Codes

When submitting Income Tax Returns (ITR), individuals in India utilise a Business and Profession Code, a numerical classification established by the Income Tax Department. It depicts the type of business or professional activity that the taxpayer engages in. Correct income classification, accurate reporting, seamless tax assessment, and compliance are all made possible by these codes. The code that best fits their work must be selected by taxpayers. These codes are specified by the IT Department, which also assists in accurately reporting revenue from various sources. Depending on the kind of business or occupation, different codes apply. When filing their ITR forms, taxpayers must choose the code that most accurately reflects their industry. The codes assist effective tax assessment and compliance and guarantee correct classification. To guarantee proper revenue reporting and compliance with tax laws, choosing the appropriate business code is essential.

Applicability of ITR Business Code

The business and profession codes for submitting the Income Tax Return (ITR) have been established by the Central Board of Direct Taxes (CBDT). Sections 44AD, 44ADA, 44AE, and other businesses are the divisions of these business codes into business income.

• ITR-3: Taxpayers who do not choose the Presumptive Taxation Scheme but have business or professional income are required to create financial statements and submit ITR-3. The taxpayer should choose from the drop-down list the appropriate codes and category that the business or profession falls under. Additionally, the business or profession's trade name and a description of its activities can be included.

• ITR-4: Taxpayers who choose the Presumptive Taxation Scheme under sections 44AD or 44ADA and have income from their business or profession are exempt from keeping books of accounts and are nonetheless required to file an ITR. Therefore, using the drop-down list, the taxpayer should choose the appropriate codes and the category that the business or profession falls under. It is also possible to include a description of the business or profession's activity and its trade name.

New Income Tax Business and Professional Codes Introduced in FY 2024-25

By adding new business and profession codes, the Income Tax Department has updated ITR utilities for AY 2025–26 (FY 2024–25). These codes apply to taxpayers who are involved in the following new revenue-generating activities:

• Commission Agents (09029): Relevant to middlemen in marketplaces where profits are seen as business income.

• Social Media Influencers (16021): Earnings from websites such as YouTube, Instagram, TikTok, and others are classified as professional earnings.

• Speculative Trading (21009): Intraday stock trading is considered speculative business income since it involves buying and selling on the same day.

• Futures and Options (F&O) Trading (21010): Derivatives trading, including intraday and overnight positions in stocks, commodities, and currencies, is considered non-speculative business revenue.

• Buying and Selling Shares (21011): Delivery-based equity trading is regarded as a primary source of revenue or a business activity. (This is not the same as investment capital gains, which are subject to separate taxes.)

Income Tax Business Code List

Sector	Sub-Sector	Code
Agriculture, Animal Husbandry and Forestry	Growing and manufacturing of tea	1001
-	Growing and manufacturing of coffee	1002
-	Growing and manufacturing of rubber	1003
-	Market gardening and horticulture specialities	1004
-	Raising of silkworms and production of silk	1005
-	Raising of bees and production of honey	1006
-	Raising of poultry and production of eggs	1007
-	Rearing of sheep and production of wool	1008
-	Rearing of animals and production of animal products	1009
-	Agricultural and animal husbandry services	1010
-	Soil conservation, soil testing and soil desalination services	1011
-	Hunting, trapping and game propagation services	1012
-	Growing of timber, plantation, operation of tree nurseries and conserving of forest	1013
-	Gathering of tendu leaves	1014
-	Gathering of other wild growing materials	1015
-	Forestry service activities, timber cruising, afforestation, and restoration	1016
-	Logging service activities, transport of logs within the forest	1017
-	Other agriculture, animal husbandry or forestry activity n.e.c.	1018
Fish Farming	Fishing on a commercial basis in inland waters	2001
-	Fishing on a commercial basis in the ocean and coastal areas	2002
-	Fish farming	2003
-	Gathering of marine materials such as natural pearls, sponges, coral, etc.	2004
-	Services related to marine and freshwater fisheries, fish hatcheries and fish farms	2005
-	Other fish farming activity	2006
Mining and Quarrying	Mining and agglomeration of hard coal	3001
-	Mining and agglomeration of lignite	3002
-	Extraction and agglomeration of peat	3003
-	Extraction of crude petroleum and natural gas	3004
-	Service activities incidental to oil and gas extraction, excluding surveying	3005
-	Mining of uranium and thorium ores	3006
-	Mining of iron ores	3007
-	Mining of non-ferrous metal ores, except uranium and thorium ores	3008
-	Mining of gemstones	3009
-	Mining of chemical and fertiliser minerals	3010
-	Mining of quarrying of abrasive materials	3011
-	Mining of mica, graphite and asbestos	3012
-	Quarrying of stones (marble/granite/dolomite), sand and clay	3013
-	Other mining and quarrying	3014
-	Mining and production of salt	3015
-	Other mining and quarrying	3016
Manufacturing	Production, processing and preservation of meat and meat products	4001
-	Production, processing and preservation of fish and fish products	4002
-	Manufacture of vegetable oil, animal oil and fats	4003
-	Processing of fruits, vegetables and edible nuts	4004
-	Manufacture of dairy products	4005
-	Manufacture of sugar	4006
-	Manufacture of cocoa, chocolates and sugar confectionery	4007
-	Flour milling	4008
-	Rice milling	4009
-	Dal milling	4010
-	Manufacture of other grain mill products	4011
-	Manufacture of bakery products	4012
-	Manufacture of starch products	4013
-	Manufacture of animal feeds	4014
-	Manufacture of other food products	4015
-	Manufacturing of wines	4016
-	Manufacture of beer	4017
-	Manufacture of malt liquors	4018
-	Distilling and blending of spirits, production of ethyl alcohol	4019
-	Manufacture of mineral water	4020
-	Manufacture of soft drinks	4021
-	Manufacture of other non-alcoholic beverages	4022
-	Manufacture of tobacco products	4023
-	Manufacture of textiles (other than by handloom)	4024
-	Manufacture of textiles using handlooms (khadi)	4025
-	Manufacture of carpet, rugs, blankets, shawls, etc. (other than by hand)	4026
-	Manufacture of carpet, rugs, blankets, shawls etc. by hand	4027
-	Manufacture of apparel	4028
-	Tanning and dressing of leather	4029
-	Manufacture of luggage, handbags and the like saddler and harness	4030
-	Manufacture of footwear	4031
-	Manufacture of wood and wood products, cork, straw and plaiting material	4032
-	Manufacture of paper and paper products	4033
-	Publishing, printing and reproduction of recorded media	4034
-	Manufacture of coke oven products	4035
-	Manufacture of refined petroleum products	4036
-	Processing of nuclear fuel	4037
-	Manufacture of fertilisers and nitrogen compounds	4038
-	Manufacture of plastics in primary forms and synthetic rubber	4039
-	Manufacture of paints, varnishes and similar coatings	4040
-	Manufacture of pharmaceuticals, medicinal chemicals and botanical products	4041
-	Manufacture of soap and detergents	4042
-	Manufacture of other chemical products	4043
-	Manufacture of man-made fibres	4044
-	Manufacture of rubber products	4045
-	Manufacture of plastic products	4046
-	Manufacture of glass and glass products	4047
-	Manufacture of cement, lime and plaster	4048
-	Manufacture of articles of concrete, cement and plaster	4049
-	Manufacture of Bricks	4050
-	Manufacture of other clay and ceramic products	4051
-	Manufacture of other non-metallic mineral products	4052
-	Manufacture of pig iron, sponge iron, Direct Reduced Iron, etc.	4053
-	Manufacture of Ferroalloys	4054
-	Manufacture of ingots, billets, blooms, slabs, etc.	4055
-	Manufacture of steel products	4056
-	Manufacture of basic precious and nonferrous metals	4057
-	Manufacture of non-metallic mineral products	4058
-	Casting of metals	4059
-	Manufacture of fabricated metal products	4060
-	Manufacture of engines and turbines	4061
-	Manufacture of pumps and compressors	4062
-	Manufacture of bearings and gears	4063
-	Manufacture of ovens and furnaces	4064
-	Manufacture of lifting and handling equipment	4065
-	Manufacture of other general-purpose machinery	4066
-	Manufacture of agricultural and forestry machinery	4067
-	Manufacture of Machine Tools	4068
-	Manufacture of machinery for metallurgy	4069
-	Manufacture of machinery for mining, quarrying and construction	4070
-	Manufacture of machinery for processing of food and beverages	4071
-	Manufacture of machinery for leather and textile	4072
-	Manufacture of weapons and ammunition	4073
-	Manufacture of other special-purpose machinery	4074
-	Manufacture of domestic appliances	4075
-	Manufacture of office, accounting and computing machinery	4076
-	Manufacture of electrical machinery and apparatus	4077
-	Manufacture of Radio, Television, communication equipment and apparatus	4078
-	Manufacture of medical and surgical equipment	4079
-	Manufacture of industrial process control equipment	4080
-	Manufacture of instruments and appliances for measurements and navigation	4081
-	Manufacture of optical instruments	4082
-	Manufacture of watches and clocks	4083
-	Manufacture of motor vehicles	4084
-	Manufacture of the body of motor vehicles	4085
-	Manufacture of parts & accessories for motor vehicles & engines	4086
-	Building & repair of ships and boats	4087
-	Manufacture of railway locomotives and rolling stocks	4088
-	Manufacture of aircraft and spacecraft	4089
-	Manufacture of bicycles	4090
-	Manufacture of other transport equipment	4091
-	Manufacture of furniture	4092
-	Manufacture of jewellery	4093
-	Manufacture of sports goods	4094
-	Manufacture of musical instruments	4095
-	Manufacture of games and toys	4096
-	Other manufacturing n.e.c.	4097
-	Recycling of metal waste and scrap	4098
-	Recycling of non-metal waste and scrap	4099
Electricity, Gas and Water	Production, collection and distribution of electricity	5001
-	Manufacture and distribution of gas	5002
-	Collection, purification and distribution of water	5003
-	Other essential commodity service n.e.c.	5004
Construction	Site preparation works	6001
-	Building of complete constructions or parts-	6002
-	civil contractors
-	Building installation	6003
-	Building completion	6004
-	Construction and maintenance of roads, rails, bridges, tunnels, ports, harbour, runways etc.	6005
-	Construction and maintenance of power plants	6006
-	Construction and maintenance of industrial plants	6007
-	Construction and maintenance of power transmission and telecommunication lines	6008
-	Construction of waterways and water reservoirs	6009
-	Other construction activity n.e.c.	6010
Real Estate and Renting Service	Purchase, sale and letting of leased buildings (residential and non-residential)	7001
-	Operating of real estate of self-owned buildings (residential and non-residential)	7002
-	Developing and sub-dividing real estate into lots	7003
-	Real estate activities on a fee or contract basis	7004
-	Other real estate/renting services n.e.c.	7005
Renting of Machinery	Renting of land transport equipment	8001
-	Renting of water transport equipment	8002
-	Renting of air transport equipment	8003
-	Renting of agricultural machinery and equipment	8004
-	Renting of construction and civil engineering machinery	8005
-	Renting of office machinery and equipment	8006
-	Renting of other machinery and equipment n.e.c.	8007
-	Renting of personal and household goods n.e.c.	8008
-	Renting of other machinery n.e.c.	8009
Wholesale And Retail Trade	Wholesale and retail sale of motor vehicles	9001
-	Repair and maintenance of motor vehicles	9002
-	Sale of motor parts and accessories- wholesale and retail	9003
-	Retail sale of automotive fuel	9004
-	General commission agents, commodity brokers and auctioneers	9005
-	Wholesale of agricultural raw material	9006
-	Wholesale of food & beverages and tobacco	9007
-	Wholesale of household goods	9008
-	Wholesale of metals and metal ores	9009
-	Wholesale of household goods	9010
-	Wholesale of construction material	9011
-	Wholesale of hardware and sanitary fittings	9012
-	Wholesale of cotton and jute	9013
-	Wholesale of raw wool and raw silk	9014
-	Wholesale of other textile fibres	9015
-	Wholesale of industrial chemicals	9016
-	Wholesale of fertilisers and pesticides	9017
-	Wholesale of electronic parts & equipment	9018
-	Wholesale of other machinery, equipment and supplies	9019
-	Wholesale of waste, scrap & materials for recycling	9020
-	Retail sale of food, beverages and tobacco in specialised stores	9021
-	Retail sale of other goods in specialised stores	9022
-	Retail sales in non-specialised stores	9023
-	Retail sale of textiles, apparel, footwear, leather goods	9024
Hotels, Restaurants and Hospitality Services	Hotels – Star rated	10001
-	Hotels – non-star rated	10002
-	Motels, Inns and Dharmshalas	10003
-	Guest houses and circuit houses	10004
-	"Dormitories and hostels at educational institutions"	10005
-	Short stay accommodations n.e.c.	10006
-	Restaurants – with bars	10007
-	Restaurants – without bars	10008
-	Canteens	10009
-	Independent caterers	10010
-	Casinos and other games of chance	10011
-	Other hospitality services n.e.c.	10012
Transport and Logistic Services	Travel agencies and tour operators	11001
-	Packers and movers	11002
-	Passenger land transport	11003
-	Air transport	11004
-	Transport by urban/sub-urban railways	11005
-	Inland water transport	11006
-	Sea and coastal water transport	11007
-	Freight transport by road	11008
-	Freight transport by railways	11009
-	Forwarding of freight	11010
-	Receiving and acceptance of freight	11011
-	Cargo handling	11012
-	Storage and warehousing	11013
-	"Transport via pipelines (transport of gases, liquids, slurry and other commodities)"	11014
-	Other Transport & Logistic services n.e.c.	11015
Post And Telecommunication Services	Post and courier activities	12001
-	Basic telecom services	12002
-	Value-added telecom services	12003
-	Maintenance of telecom network	12004
-	Activities of the cable operators	12005
-	Other Post & Telecommunication services n.e.c.	12006
Financial Intermediation Services	Commercial banks, saving banks and discount houses	13001
-	Specialised institutions granting credit	13002
-	Financial leasing	13003
-	Hire-purchase financing	13004
-	Housing finance activities	13005
-	Commercial loan activities	13006
-	Credit cards	13007
-	Mutual funds	13008
-	Chit fund	13009
-	Investment activities	13010
-	Life insurance	13011
-	Pension funding	13012
-	Non-life insurance	13013
-	Administration of financial markets	13014
-	Stockbrokers, sub-brokers and related activities	13015
-	Financial advisers, mortgage advisers and brokers	13016
-	Foreign exchange services	13017
-	Other financial intermediation services n.e.c.	13018
Computer And Related Services	Software development	14001
-	Other software consultancy	14002
-	Data processing	14003
-	Database activities and distribution of electronic content	14004
-	Other IT-enabled services	14005
-	BPO services	14006
-	Cyber café	14007
-	Maintenance and repair of office, accounting and computing machinery	14008
-	Computer training and educational institutes	14009
-	Other computation related services n.e.c.	14010
Research And Development	Natural sciences and engineering	15001
-	Social sciences and humanities	15002
-	Other Research & Development activities n.e.c.	15003
Professions	Legal profession	16001
-	Accounting, book-keeping and auditing profession	16002
-	Tax consultancy	16003
-	Architectural profession	16004
-	Engineering and technical consultancy	16005
-	Advertising	16006
-	Fashion Designing	16007
-	Interior decoration	16008
-	Photography	16009
-	Auctioneers	16010
-	Business Brokerage	16011
-	Market research and public opinion polling	16012
-	Business and management consultancy activities	16013
-	Labour recruitment and provision of personnel	16014
-	Investigation and security services	16015
-	Building-cleaning and industrial cleaning activities	16016
-	Packaging activities	16017
-	Secretarial activities	16018
-	Medical Profession	16019_1
-	Film Artist	16020
-	Other professional services n.e.c.	16019
Education Services	Primary education	17001
-	Secondary/ senior secondary education	17002
-	Technical and vocational secondary/ senior secondary education	17003
-	Higher education	17004
-	Education by correspondence	17005
-	Coaching centres and tuition	17006
-	Other education services n.e.c.	17007
Health Care Services	General hospitals	18001
-	Speciality and super-speciality hospitals	18002
-	Nursing homes	18003
-	Diagnostic centres	18004
-	Pathological laboratories	18005
-	Independent blood banks	18006
-	Medical transcription	18007
-	Independent ambulance services	18008
-	Medical suppliers, agencies and stores	18009
-	Medical clinics	18010
-	Dental practice	18011
-	Ayurveda practice	18012
-	Unani practice	18013
-	Homeopathy practice	18014
-	Nurses, physiotherapists or other paramedical practitioners	18015
-	Veterinary hospitals and practice	18016
-	Medical education	18017
-	Medical research	18018
-	The practice of other alternative medicine	18019
-	Other healthcare services	18020
Social And Community Work	Social work activities with accommodation (orphanages and old age homes)	19001
-	Social work activities without accommodation (Creches)	19002
-	Industry associations, chambers of commerce	19003
-	Professional organisations	19004
-	Trade unions	19005
-	Religious organisations	19006
-	Political organisations	19007
-	Other membership organisations n.e.c. (rotary clubs, book clubs and philatelic clubs)	19008
-	Other Social or community service n.e.c.	19009
Culture And Sport	Motion picture production	20001
-	Film distribution	20002
-	Film laboratories	20003
-	Television channel productions	20004
-	Television channels broadcast	20005
-	Video production and distribution	20006
-	Sound recording studios	20007
-	Radio - recording and distribution	20008
-	Stage production and related activities	20009
-	Individual artists, excluding authors	20010
-	Literary activities	20011
-	Other cultural activities n.e.c.	20012
-	Circuses and race tracks	20013
-	Video Parlours	20014
-	News agency activities	20015
-	Library and archives activities	20016
-	Museum activities	20017
-	Preservation of historical sites and buildings	20018
-	Botanical and zoological gardens	20019
-	Operation and maintenance of sports facilities	20020
-	Activities of sports and game schools	20021
-	Organisation and operation of indoor/outdoor sports and promotion and production of sporting events	20022
-	Sports Management	20023_1
-	Other sporting activities n.e.c.	20023
-	Other recreational activities n.e.c.	20024
Other Services	Hairdressing and other beauty treatment	21001
-	Funeral and related activities	21002
-	Marriage bureaus	21003
-	Pet care services	21004
-	Sauna and steam baths, massage salons etc.	21005
-	Astrological and spiritualists’ activities	21006
-	Private households as employers of domestic staff	21007
-	Event Management	21008_1
-	Other services n.e.c.	21008
Extra-Territorial Organisations and Bodies	Extra-territorial organisations and bodies (IMF, World Bank, European Commission, etc.)	22001
Co-Operative Society Activities	Banking/Credit Facilities to its members	23001
-	Cottage Industry	23002
-	Marketing of Agricultural produce grown by its members	23003
-	Purchase of Agricultural Implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying to its members.	23004
-	Processing, without the aid of power, of the agricultural Produce of its members.	23005
-	Collective disposal of Labour of its members	23006
-	Fishing or allied activities to supply to its members.	23007
-	Primary cooperative society engaged in supplying Milk, oilseeds, fruits or vegetables raised or grown by its members to Federal cooperative society engaged in supplying Milk, oilseeds, fruits or vegetables/Government or local authority/Government Company / corporation established by or under a Central, State or Provincial Act	23008
-	Consumer Cooperative Society Other than specified in 80P(2a) or 80P(2b)	23009
-	Other Cooperative Society engaged in activities Other than specified in 80P(2a) or 80P(2b)	23010
-	Interest/Dividend from Investment in other co-operative society	23011
-	Income from Letting of godowns /warehouses for storage, processing / facilitating the marketing of commodities	23012
-	Others	23013
-	Federal milk co-operative society	23014
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Significance of Selecting the Appropriate Business Code for ITR Filing

Incorrect business code filing might lead to inconsistencies and possibly even scrutiny. Here's why choosing the appropriate code is crucial:

• Tax classification accuracy: Your actual source of income is reflected in the correct classification.

• Benefits claim: Business codes determine which deductions and exemptions you qualify for.

• Relevance of ITR Form: Assists in matching the appropriate ITR form to your income type.

• Decreased scrutiny risk: Guarantees more efficient processing and lowers the likelihood of tax notices.

• Audit ease: Proper business code facilitates transparent representation in audit situations.

Steps to Choose the Correct Income Tax Business Code

Step 1: -To choose the codes, confirm the type of goods or services being offered in order to identify the industry or occupation.

Step 2: The type of activity involved under each sector must be observed in order to identify the sub-sector.

Step 3: You must use different codes under the same trade name if you are engaged in several separate endeavours, businesses, or occupations.

Step 4: You must mention many codes under distinct trade names when there are various trade names under a single PAN.

Step 5: If your goods, services, or activity isn't precisely specified in the main categorisation, you can choose n.e.c., which is another code for each sector.

Common Business Code Selection Mistakes and Their Impact

Some taxpayers purposefully omit the company code because they believe it is not necessary. It is required for ITR-3 and ITR-4 filers, however. If something is left out, your return may be labelled as defective. Similarly, choosing an out-of-date or inaccurate business code could result in:

• Misclassification of income under the incorrect heading

• Presumptive taxes (such as 44AD/ADA) are not applicable

• Risk of scrutiny or inconsistency when processing the ITR

• Inaccuracies in the turnover calculation or audit applicability

• Loss claims can be challenging, particularly for traders

Conclusion

In conclusion, when filling out your Income Tax Return (ITR) forms, it is crucial to apply income tax business codes carefully. These protocols guarantee accuracy and openness in financial reporting in addition to meeting regulatory obligations. You support efficient tax assessments and a healthy financial climate by making appropriate choices from the income tax business code list. In addition to assisting with compliance, this accuracy and clarity in reporting builds confidence and dependability between you and regulatory agencies.

FAQs

Q1. Which sections categorise business income for ITR filing?

Section 44AD, Section 44ADA, Section 44AE, and other designated categories enable the classification of business income for the purpose of ITR filing.

Q2. Why is a business code used?

The nature of a business or profession carried out by a taxpayer is represented by the code used for ITR filing. They also help ensure that income from different sources is reported appropriately.

Q3. How are these codes beneficial for taxpayers?

In order to ensure compliance with tax rules and facilitate more efficient tax assessments, company codes for ITR assist taxpayers in appropriately reporting income from particular business activities.

Q4. Do I need to use ITR business code while filing my ITR?

Yes, choosing the appropriate business and profession code is essential for both avoiding penalties and ensuring an accurate tax assessment.

Q5. How do I know my business code?

The type of services or business you are involved in is up to you. The business code should only be included in ITR-3, ITR-4, ITR-5, and ITR-6.

Q6. What is business code 21008 in ITR?

Business code 21008 applies in case of “Other Services n.e.c”.

Q7. What is the full form of “n.e.c”?

The acronym for "not elsewhere classified" is "n.e.c." As a result, the information provided here is unique and cannot be found elsewhere.

Q8. What is the business code for a freelancer in ITR 3?

In case of freelancers, 'Code 16019' for section 44AD is applicable.

Q9. Can I use multiple business codes in my ITR form?

Yes, you can use more than one business code on your income tax return if your operations fall under distinct categories.

Q10. Can I change my income tax business code after I submit my ITR?

You can change your business code for your ITR by filing an amended return within the allotted time frames if you discover a mistake after it has been submitted.

Q11. Am I required to change my ITR business code every year?

Any modifications to your business operations should be reflected in your business/profession code. When submitting your yearly ITR, update it appropriately.

Q12. What happens if I choose the incorrect business code?

In income tax, choosing the improper business code type may result in an inaccurate tax assessment. To prevent fines or further tax obligations, accuracy must be guaranteed.

Q13. Will I face a penalty if I do not use a business code?

It is essential to use the appropriate company code. If you don't, tax officials might ask you questions or your ITR processing could be delayed.

Q14. Do salaried individuals need to fill a business code?

No. Individuals who file an ITR-1 with only salary income are exempt from the need for business codes. However, business code is required if they have a side business or freelance income.