Important Keyword: ITR Filing, ITR Forms, New Tax Regime.

Form 10IEA: Opting out of/Re-entering New Tax Regime

Starting from the financial year 2023-24, the new tax regime has been designated as the default option for taxpayers. However, individuals with business or professional income are required to actively choose the old regime by completing Form 10IEA. This form serves as a declaration by return filers indicating their preference for the ‘Old Tax Regime’.

By submitting Form 10IEA, individuals can inform the income tax department of their decision to opt for the old regime. Conversely, individuals without business or professional income are automatically enrolled in the old tax regime, simplifying the process for them. They can file their income tax return without the necessity of submitting Form 10IEA. This streamlined approach ensures clarity and efficiency in tax regime selection for taxpayers based on their income sources.

When to submit Form 10IEA?

Before filing your income tax return, it’s imperative to submit Form 10IEA. This form must be filed before the due date of filing ITR, typically by July 31, for individuals with business income. Upon submission, an acknowledgment number will be generated.

However, it’s noteworthy that Form 10IE, formerly utilized for opting into the new tax regime, has been discontinued. Its usage was extended until the financial year 2022-23. With the commencement of the new default tax regime from FY 2023-24 onwards, it has been phased out. Henceforth, the new tax regime will be automatically applied, unless individuals explicitly opt for the old regime.

When completing Form 10IEA, the following details need to be provided:

1. Name of the individual/HUF
2. PAN
3. Status of the person
4. Assessment Year for which the form is being furnished
5. Whether opting out of or re-entering the New Tax regime
6. If re-entering, details of the previously exercised option
7. Confirmation regarding any unit in the International Financial Services Centre (IFSC), if applicable
8. Declaration section

Sample of Form 10IEA

E-filing the Form 10IEA

The recent notification has emphasized that taxpayers are required to electronically file Form 10IEA. To opt for the Old tax regime for the financial year 2023-2024 onwards, taxpayers can conveniently file the form on the IT Portal. This process can be completed using either a digital signature certificate or an electronic verification code, offering flexibility and ease of compliance. By leveraging digital platforms for filing Form 10IEA, taxpayers can efficiently navigate the transition to the Old tax regime, ensuring adherence to regulatory requirements while embracing the benefits of digitalization in tax compliance procedures.

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Official Income Tax Return filing website: https://incometaxindia.gov.in/