Tax Consultant
1826 Points
Posted on 07 September 2026
For real estate brokers filing ITR-3 under the Income Tax Act 2025 framework for AY 2026-27, the business code selection has been updated from the old National Industrial Classification system to the new IT department schedule.
For real estate brokerage under the new ITR-3 schedule:
- Nature of Business: Real estate
- Code to select: 68100 - Real estate activities with own or leased property
- If you also provide advisory services (property valuation, legal coordination, buyer consulting): 68209 - Other real estate activities
Brokers who ONLY earn commission from property transactions (no direct property ownership or leasing) should use 68209 or the closest equivalent in the ITR-3 dropdown for AY 2026-27.
Note: If your CA uses tax software (like Computax, Winman, or TaxPro), the software populates the code descripttion next to the dropdown. Match your actual activity descripttion to the dropdown option - the code itself is less important than accurately describing the activity.
For Section 44AD presumptive taxation: Real estate brokerage is typically classified as business (not profession), so you would fall under Section 44AD if opting for the presumptive scheme, not Section 44ADA.
This [income tax guide for real estate agents and brokers AY 2026-27](https://taxgarden.in/blog/income-tax-for-real-estate-agents-brokers-india-ay-2026-27) covers ITR form selection, business codes, deductions, and TDS under Section 393.