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
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.
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