Nature of business n which itr to be filed

Save Share

This query is : Resolved

prachi jain (Querist)

06 December 2012 my client is a sport club and collects annual membership fees and life membership fees from its members Which ITR form will be used to file Inc0me Tax Return

CA. Subhash Dangi

CA. Subhash Dangi (Expert)

06 December 2012 Check whether the Sports club is registered under Trust, Association, Union or AOP or BOI etc or not.

If it is registered under above categories, then ITR - 5 is to be filed.

prachi jain

prachi jain (Querist)

10 December 2012 then sir
wat is the nature of business of sports club ..
i didnt get any related nature of business can u specify that

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

03 August 2024 For a sports club that collects annual and life membership fees from its members, the nature of business and the appropriate Income Tax Return (ITR) form will depend on several factors, including whether the club is considered a non-profit organization or a profit-oriented entity.

### **Nature of Business:**

A sports club is typically involved in activities related to sports, recreation, and club membership management. The nature of business for such a club might not fit neatly into standard codes for for-profit businesses, but the closest classifications are:

1. **Activities Related to Membership Fees Collection:**
- **Code:** This can be categorized under various codes depending on how the fees are used and the nature of the club's activities. For a sports club, there isn't a specific code for membership-based clubs, so a broad code like “**Other Membership Organizations**” might be applicable.

2. **Nature of Business Code:**
- **Potential Code:** Since specific codes for sports clubs might not be available, you can use **9999 - Other Activities** or **9101 - Activities of Business, Professional, and Membership Organizations** (if available in the list).

### **Income Tax Return (ITR) Forms:**

1. **ITR-7**: This form is used by entities like:
- Trusts
- Charitable institutions
- Political parties
- Other entities that are not required to file ITR-1, ITR-2, ITR-3, ITR-4, or ITR-5

**Appropriate for a sports club if it is registered as a trust or a non-profit organization.**

2. **ITR-5**: This form is used by:
- Firms
- Association of Persons (AOP)
- Body of Individuals (BOI)
- Limited Liability Partnerships (LLP)
- Any other person or entity not covered by other ITR forms.

**Appropriate for a sports club if it is structured as a partnership or an association.**

### **Summary:**

- **Nature of Business Code:** If specific codes for sports clubs are not available, you can use **9999 - Other Activities** or a similar broad category.
- **ITR Form:**
- **ITR-7:** If the sports club operates as a non-profit entity or trust.
- **ITR-5:** If the club operates as an AOP, BOI, or any other entity not covered by the other ITR forms.

Always ensure to consult with a tax professional to confirm the appropriate classification and ITR form based on the specific structure and operational details of the sports club.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now