The Income Tax Department has updated ITR Utilities for Assessment Year 2025-26 with new codes for business or profession.
These updated codes are for taxpayers engaged in emerging income-generating activities such as social media influencing, stock trading etc.
New Business/Profession Codes
| 09029 | Commission Agents | For those acting as intermediaries in markets which is treated as business income. |
| 16021 | Social Media Influencers | Earnings from platforms like YouTube, Instagram, TikTok, etc. Treated as professional income. |
| 21009 | Speculative Trading | Intraday equity trading, where buying and selling occur on the same day. |
| 21010 | Futures & Options Trading | Trading in F&O on stocks, commodities, currencies, including both intraday and overnight positions. Treated as non-speculative business income. |
| 21011 | Buying & Selling of Shares | Delivery-based equity trading, done frequently as a business activity or primary income source. This is distinct from capital gains (investment perspective). Taxed as business income. |
Why Does Selecting Correct Codes Matter while Filing ITR?
- Selecting wrong code may lead to notices or rejections, if audited u/s 44AB or opting for Presumptive Taxation under 44ADA/44AD.
- Risk of scrutiny or mismatch during CPC processing
- It may become difficult to claim losses (especially for traders):
- Code 21009: Losses can only be set off against speculative gains.
- Code 21010: Losses can be set off against other business income.
Select the correct business/profession code while filing ITR to ensure proper tax computation, correct set-off of losses, and for faster or smoother processing of returns.
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