Tailoring AppNIC code for tailoring: 14105, 95292 and the income tax business code (2026)
Most tailors meet these codes when a form refuses to move forward without one. The confusing part is that India uses several different code lists, and people often mix them up. A tailoring shop may need up to three: one for Udyam registration, one for the income tax return, and one on GST bills.
Here is the short answer, followed by how to choose. We checked the codes against the government's own lists where we could, and we say so where we could not.
The short answer
| What you do | NIC code (Udyam) | Income tax business code (ITR) |
|---|---|---|
| Stitch to measure for customers | 14105, Custom tailoring | 04028, Manufacture of wearing apparel |
| Only alterations and repairs | 95292, Repair and alteration of clothing | No exact match: ask your CA |
| Boutique selling ready stock | 47711, Retail sale of readymade garments | 09024, Retail sale of textiles, apparel, footwear, leather goods |
| Fashion designer selling designs | 74101, Fashion design | 16007, Fashion designing (a profession) |
If you both stitch and sell, you can list more than one activity on Udyam. On the ITR, pick the code for the activity that brings in most of your income.
Three code lists, three purposes
- NIC code. The National Industrial Classification describes what kind of business you run. You choose it on Udyam registration and on some loan and licence forms.
- ITR business code. The "nature of business" code in the income tax return is a different list. It has its own numbers, and a NIC code will not work in the ITR.
- SAC or HSN code. Only for GST bills. Stitching services fall under SAC 9988; our GST guide for tailors covers the code, the rate and when you need to register.
NIC code for a tailoring shop
These come from the official NIC 2008 list published by the Ministry of Statistics.
- 14105, Custom tailoring. The right code for a shop or boutique that stitches garments to a customer's measurements. It sits under class 1410, manufacture of wearing apparel.
- 95292, Repair and alteration of clothing. For shops that only alter or repair. Class 1410 itself points repair work to this code, so it is not the same thing as custom tailoring.
- 47711, Retail sale of readymade garments, hosiery goods, other articles of clothing and clothing accessories. If your boutique also sells ready stock from the shop. Take care with nearby codes: 47713 is footwear.
- 74101, Fashion design. For design work related to textiles, wearing apparel and similar.
A newer NIC 2025 list is reported to exist. We could not confirm whether the Udyam portal has moved to it, so if the screen shows a different code or wording, choose the description that matches your work. The description matters more than the number.
Udyam registration
Udyam is the government's registration for small businesses. It is what most people mean when they ask about an MSME certificate. Banks and government schemes often ask for it.
- It is free. The official portal states that no fee is payable to anyone. Sites that look official and charge for it are agents, so use udyamregistration.gov.in.
- What you need. Your Aadhaar. PAN and GSTIN apply as well, though a business that does not need GST registration is exempt from the GSTIN requirement.
- One registration per business. Any number of activities can be added under it, so add 95292 and 47711 if you also do alterations or sell ready stock.
Business code in your income tax return
Here is the part most guides get wrong: no code in the income tax list is named tailoring, stitching or boutique. You pick the closest one.
The latest official list we could read is in the ITR-4 instructions for AY 2020-21. Lists for AY 2026-27 published by tax sites show the same codes for these activities, with one exception noted below.
- 04028, Manufacture of wearing apparel. The closest fit for a tailor or a boutique stitching for customers.
- 09024, Retail sale of textiles, apparel, footwear, leather goods. For a boutique that mainly sells ready stock.
- 16007, Fashion designing. Listed under professions. This fits a designer selling design services, and it has a tax effect, explained below. Some websites show 16006, but in the official list that code is advertising.
A shop that only does alterations has no close match in this list, so ask your CA which code to use. Which code suits you is our reading of the list, not an official ruling. Before filing, search the "nature of business" dropdown in the current return, and ask your CA if your work could fit more than one.
The 44AD presumptive scheme, in plain words
Most small shops do not want to keep full account books. Section 44AD lets you declare a fixed share of your receipts as income instead.
| Rule | Detail |
|---|---|
| Who | A resident individual, family business (HUF) or partnership firm, but not an LLP. Tailoring counts as a business. |
| Turnover limit | ₹2 crore, or ₹3 crore if cash receipts are 5% or less of the total |
| Income you declare | 6% of receipts by UPI, card or bank; 8% of cash receipts. You can declare more. |
| Return form | Usually ITR-4, for total income up to ₹50 lakh |
| Books of account | Not required under this scheme |
An example. A boutique takes ₹12 lakh in a year: ₹8 lakh by UPI and card, and ₹4 lakh in cash. Its presumed income is ₹48,000 (6% of ₹8 lakh) plus ₹32,000 (8% of ₹4 lakh), or ₹80,000. If it had taken all ₹12 lakh in cash, the figure would be ₹96,000. Digital receipts bring down your presumed income, so a clean record of how each payment came in is worth having.
Three things to watch:
- The five-year rule. If you use 44AD and then drop out of it within five years, you cannot use it again for the next five years. You may also need full books and a tax audit in that period if your income is above the basic exemption limit.
- Section 44ADA is different. It covers specified professions, at 50% of receipts. Tailoring is a business and belongs under 44AD. A fashion designer filing under 16007 should ask a CA which applies, because 50% is a very different number from 6%.
- The new Income-tax Act. The Income-tax Act, 2025 came into force on 1 April 2026. Tax commentators report that 44AD carries over as Section 58 with the same limits and rates, though we could not check this against an official table. Returns for the year ending March 2026 still follow the old Act.
This is general information, not tax advice. Rules change every year, so confirm with your CA before filing.
Keep a record that makes this easy
The return only needs totals, but those totals have to come from somewhere: who paid, how much, and whether it was cash or UPI. If that lives on bill slips, the first week of filing season is spent adding them up.
In Tailoring App every advance and balance payment is recorded against the order with how it was paid: cash, UPI, card or bank. Order slips, receipts and bills can be sent to the customer on WhatsApp, and bills are in beta, with each shop switching them on when ready. It is free for one person and 50 orders a month. See how it works for tailoring shops and for boutiques.