Income Tax Business Code 06002 — What It Means & Which Businesses Use It

The income-tax nature of business / profession code 06002 appears in ITR-3, ITR-4 and ITR-5 schedules where the taxpayer must disclose the principal business activity. This guide explains what code 06002 covers, which types of businesses typically select it, and how to confirm you’re using the right code on your return.

What is business code 06002?

In the income-tax return, the 5-digit nature of business code identifies the broad category of business activity. The first two digits indicate the macro sector, and the remaining three narrow the activity further. Codes starting with 06 generally fall under manufacturing / industrial activity sub-categories used in the older ITR-4 / ITR-5 schedules.

Because the income-tax department periodically updates the master code list, code 06002 may correspond to one of the following depending on the assessment year you’re filing for:

• Specialised industrial / manufacturing sub-activity (older ITR-4 code-list)
• Wholesale / retail trade auxiliary activity (newer ITR-3 / ITR-5 schedules)
• Service auxiliary to manufacturing (where the AY’s master list classifies it that way)

Always cross-check the code in the master code table published with your ITR’s utility / Excel for the relevant Assessment Year — the department does re-classify sub-codes between AYs.

Which businesses commonly use code 06002?

Based on historical ITR utilities, businesses that fall under or near the 06002 classification include:

• Manufacturers of specialised goods not covered by other 06-series codes
• Businesses carrying on auxiliary industrial processing activity
• Traders acting as commission agents or auctioneers in manufacturing supply chains
• Service providers engaged in testing, grading, quality certification of industrial inputs

Where to enter the code in your ITR

1. Open the relevant ITR schedule (typically Schedule BP or the nature-of-business table).

2. Enter the 5-digit code in the “Nature of business” column.

3. Add a brief description of the business in the next column.

4. If your business has multiple activities, list each one on a separate row using its respective code.

Find the correct code for your business

Use our free

Income Tax Business & Profession Code Finder

to search 1,200+ codes by activity keyword. If you’re unsure between two codes, the safer choice is the one that best describes your principal business activity, not a one-off transaction.

Frequently Asked Questions

Is code 06002 the same in every Assessment Year?

No. The income-tax department periodically refines the master code list. Always verify against the ITR utility for the specific AY you’re filing.

What happens if I select the wrong code?

Selecting the wrong nature-of-business code does not by itself invalidate the return, but it can trigger an intimation under section 143(1) and may slow down processing. In serious cases of repeated misclassification, the assessing officer may treat it as an incorrect claim.

Can I have more than one business code?

Yes. If you carry on multiple distinct businesses or professions, declare each on a separate row with its own 5-digit code in the relevant schedule.

Do I need a separate code for GST?

GST uses a different code system (HSN for goods, SAC for services). Your income-tax nature-of-business code and your HSN/SAC codes are independent — both can appear on your filings.