URGENT: NATURE OF BUSINESS OR PROFESSION
This query is : Resolved
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???
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???
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.
10 January 2011
she has tds form of deducted under contract+commission
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:
---
### 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).
---
### 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"
---
### Recommendation:
* Review income and TDS details.
* Identify which income head contributes **major portion of income**.
* Enter that corresponding business/profession code in ITR-4.
---
### 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 |
---
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!
---
### 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).
---
### 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"
---
### Recommendation:
* Review income and TDS details.
* Identify which income head contributes **major portion of income**.
* Enter that corresponding business/profession code in ITR-4.
---
### 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 |
---
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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