In the Budget 2023, the new tax regime was declared as the default. However, you still have the option to choose between the old and new tax regimes, and opt for the one that is more beneficial.
While most of us can simply select the preferred regime while filing the ITR, individuals with business/professional income need to file Form 10-IEA if they want to opt for the old regime.
Here’s the step-by-step procedure:
Submit Form 10-IEA on the e-filing portal. You’ll have to fill in basic details like the assessment year, name, PAN, etc. and declare that you want to go with the old regime.
Once submitted, you’ll get an acknowledgement number.
Add the acknowledgement number and date of filing in your ITR form.
Here are a few key considerations:
Form 10-IEA is only applicable to individuals and HUFs with business/professional income.
This form needs to be filed if you are opting for the old regime. If you wish to opt-out, you’ll have to file the form again.
You can only file this form twice in your lifetime: once for opting in and once for opting out. This means that once you opt-out, you cannot go back to the old regime ever.
You MUST file it on or before the ITR filing due date, i.e., 31st July.
Remember, this is only applicable for individuals/HUFs filing ITR-3 or ITR-4 with business/profession income. If you just have salary income or capital gains, you can simply select the regime when filing your ITR, and you also have the option to switch regimes every year.
My wife is filing ITR-4 (Old regime) Professional Income - last 3 years and presumptive income 50% deducted Rs 2,50,000 (after deduction). She has 80C exemption and 80D etc. Can she file same Old Regime for AY2024-2025 without 10-IEA etc. Please confirm
The new regime is made default from FY 23-24 onwards and if you have income from business/profession, you need to file Form 10-IEA to opt into old regime.
The new regime has been declared the default regime from FY 23-24 onwards. If you have income from business/profession, you will have to file form 10-IEA to opt into old regime. Moreover, if you again opt out of the old regime, you will not be able to opt back into it.
There are only two inputs are being asked in Form 10-IEA
( 1) If you have Income under the Head PBG & (2) is the date applicable for filing the return.
If audit is not applicable tick on 31st July , otherwise 31st Oct .
In my case , audit is not applicable & its accepted the date and I could proceed further.
Just check the audit applicability vis-a-vis date applicable for filing the return .
Hope this will resolve the issue and error will get rectified by entering correct return filing date.
Now i submitted Form 10- IEA and received the Acknowledgement Number as well. Whilst preparing ITR-4 (OTR) - Where we need to provide the Acknowledgement number of Form 10 IEA. There is another asking Date of Filing ??? Is that Date of filing Form 10-IEA or ITR-4. Which date do we need to update their.
Last year (FY22-23 AY 23-24) I filed ITR3 under Old tax regime. Now if I want to continue to file in the old tax regime should I file form 10IEA since New tax regime is the default Scheme. When contacted chat box of IT department they said you may file it. While filing form 10IEA online should I state that I am opting out of the new regime. Please clarify.
Yes, you can continue with the old tax regime. However, you will have to file Form 10-IEA to opt for the same if you have income from business/profession.
In case you don’t have income from business/profession, you can simply opt for the old regime while filing your ITR.
I want to fill itr2 but while selecting itr2 its pop up showing new regime is default, so i filled 10iea for to opt out from new to old regime. I got 10iea ack number but when i try to fill itr2 then again showing same pop up default regime is new, is it taking time to reflect entry of 10iea,
Please guide
You are only required to file form 10-IEA if you have business income and are filing ITR 3 or ITR 4.
We show new regime as the default as per the income tax rules. But you can switch to the old regime without filing Form 10IEA if you’re filing ITR-1 or ITR-2.
I have a salary income and a business income, I want to know if I can switch between Old & New tax regimes every financial year or if it’s one time only.
I have read if I have business income then I can change it only once, so I need clarity if I can switch or not.
If you have income from business, you can only switch the regimes once and not every year.
As the new regime is the default, you’ll have to file form 10-IEA to opt for the old regime. Here’s a detailed thread that can help you further: Form 10IEA for opting into old regime
Thanks for the reply.
So, in FY 22-23 i have filed ITR in Old regime, but in FY 23-24 my tax liability was less in New regime, hence the CA filed in new regime. So, suppose in FY 24-25 my tax liability comes less in old regime. What should i do then?
The new regime was made default from FY 2023-24 onwards. Now, if you want you can switch to the old regime in FY 2024-25. You’ll have to file form 10-IEA in order to do so. However, then if next year you decide to opt for the new regime again, you’ll not be able to go back to the old regime ever.
