In budget 2023, FM Sitharaman declared that the new tax regime will be the default regime from FY23-24 onwards. Until FY 22-23 if you had income from business or profession you had to file form 10IE to opt in/ out of the new tax regime. However, with the default switch to the new regime from FY 2023-24, Form 10-IE was withdrawn.
Now, as the new regime is made the default regime, the Income Tax Department (ITD) has introduced procedural changes for business owners and professionals, offering them the option to continue with the old tax regime for the financial year 2023-24.
To choose the old tax regime for the current financial year, you need to file form 10-IEA. This specific form will allow you to opt into the old tax regime and leverage the applicable tax exemptions and deductions.
Form 10-IEA needs to be submitted on or before the due date for ITR filing, i.e. 31st July.
Moreover, you will have only a one-time opportunity to switch back to the new tax regime. Once the switch is made, reverting to the old regime is no longer an option.
However, the condition only applies to individuals with business or professional income. If you don’t have such an income, you can select your preferred tax regime at the time of filing the ITR. There is no need to file form 10-IEA.
You can read more about Form 10IEA in the below article.
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