URGENT: NATURE OF BUSINESS OR PROFESSION

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amit sharma (Querist)
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08 January 2011 DEAR SIR
IF A PERSON GETTING INCOME UNDER CONTRACT WITH COMMISSION OF MASSAGE & HIS TDS ALSO DEDUCTED UNDER CONTRACT & COMMISSION. AND WHEN THE SAME PERSON FILE HIS INCOME TAX RETURN NO. 4, THEN HIS NATURE OF BUSINESS OR PROFESSION CODE WILL BE ENTERED FROM CONTRACTORS OR SERVICE SECTOR & WHY???

M Prabhakar Menon

M Prabhakar Menon (Expert)
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09 January 2011 U have to surmise based on documents and nature of the persons business a person can have more than one business the dominating one will take precedence.

amit sharma

amit sharma (Querist)
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10 January 2011 she has tds form of deducted under contract+commission

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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02 August 2025 Here’s an urgent clarification on how to determine the **Nature of Business or Profession** code in the Income Tax Return (ITR-4) for a person earning income under contract with commission of massage, with TDS deducted under contract and commission:

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### Understanding the Situation:

* Income arises from **contract work** + **commission on massage** services.
* TDS is deducted under **contract** and **commission** heads separately.
* The person files **ITR-4** (Presumptive Income scheme for business/profession).

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### How to Decide Nature of Business or Profession Code?

1. **Look at the Dominant Income Source:**

* If most income is from **contract work**, the business code should be related to **Contractors**.
* If more income is from **commission/service**, then use a **Service Sector** code.

2. **Why this matters?**

* ITR-4 asks for a single code that best describes the **main business/profession**.
* Helps Income Tax Department classify and assess the return properly.

3. **Multiple Income Heads Allowed?**

* Yes, but you must select **one predominant nature**.
* You can report other incomes in the schedule but the code reflects the major activity.

4. **Examples of Relevant Codes (from Income Tax guidelines):**

* **Contractor/Construction Business**: Code related to "Contractors"
* **Commission Agent/Service Provider**: Code related to "Commission Agents" or "Service Sector"

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### Recommendation:

* Review income and TDS details.
* Identify which income head contributes **major portion of income**.
* Enter that corresponding business/profession code in ITR-4.

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### Summary:

| Scenario | Suggested Business Code | Reason |
| -------------------------------- | -------------------------------------- | ----------------------------- |
| Income mainly from contract work | Contractor Business Code (e.g. 0031) | Contract income is dominant |
| Income mainly from commission | Commission Agent / Service Sector Code | Commission income is dominant |

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If you want, I can help you find the **exact code numbers** from the Income Tax Department’s list or draft the explanation for filing. Just let me know!

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