Abstract: The color-coded index tab is produced automatically by passing a tape through a label applying machine which is programmed by a computer to apply color-coded labels at precise locations of the tape. The tape is afterwards severed to produce the individual index tab for subsequent application to a file holder. The index tabs can be folded or not about the longitudinal center line so that the block of color on each label can be exposed around the edge of the file holder or on a flat edge surface of the file holder for viewing purposes. The individual index tabs and labels can be sized to present any number of different color coded blocks.