Form 10-IEA - Meaning and Benefits

What is Form 10-IEA?

In the Budget 2023, the new tax regime was declared to be the default tax regime. In simple terms, all the individuals who want to choose the old tax regime, need to select the option specifically by going through the required process. Form 10IEA is a form that can be used by taxpayers to exercise their right to choose between the old or the new regime. By filling this form, the taxpayers can inform the income tax department of their choice regarding the tax regime. Individuals, HUFs, AOPs (excluding co-operative societies), BOIs, or Artificial Juridical Persons with business or professional income must submit Form 10-IEA to revert to the old tax regime. It is essential to submit the form before the deadline for filing income tax return

Confused about which tax regime suits you best? We've got you covered! Check here

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What is the Purpose of Form 10-IEA?

• Individuals having income from business and profession have to mandatorily submit Form 10-IEA within the specified time frame under section 139(1) if they want to switch their tax regime from new to old.
• Filling out Form 10-IEA requires individuals to provide all the necessary information like PAN number, assessment year, name, and current status. These details can be used to accurately categorize and identify taxpayer information.
• Another important aspect of Form 10-IEA is the individual’s choice to either opt out of or re-enter the default new tax regime. This choice determines the rules and regulations that will apply to the Form 10-IEA.
• Individuals are also required to specify the relevant dates from which they want to opt out or re-enter the new tax regime while filing Form 10-IEA.
• Collecting all this information and writing down the relevant dates and choices of individuals helps the government maintain transparency in Form 10-IEA. It not only helps determine the taxpayer’s tax regime preference but also helps them maintain accurate and up-to-date tax records.

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Who needs to fill Form 10-IEA

Taxpayers who do not have any income from business or profession can choose the old tax regime by simply clicking the old regime checkbox at the time of filing ITR. However, for those who have income from business/profession, it is mandatory to fill Form 10-IEA to opt for the old regime before the ITR filing due date, i.e. 31st July. The choice made on the form will determine the tax rules and regulations that apply to the taxpayer. Filling out Form 10-IEA requires providing important information like PAN number, assessment year, name, and current status. These details assist in effectively organizing and identifying taxpayer data.

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When to Submit Form 10-IEA?

It is mandatory to submit Form 10-IEA online before the deadline prescribed for filing the income tax return (i.e., usually July 31st). After filing Form 10-IEA, you will get an acknowledgement number. It is important for tracking the status of Form 10-IEA and referencing it in future communication.

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How to fill up Form 10-IEA

To file Form 10-IEA, taxpayers must have income from business or profession and file ITR-3 or ITR-4. Those without such income can opt out of the new regime by selecting the "Opting out of new regime" option in the ITR form.

Taxpayers must provide their full name as per the PAN card and other official documents. They should mention the applicable assessment year when choosing the old tax regime, aligning it with the financial year under assessment. For instance, opting for the old tax regime in FY 2024-25 means the applicable assessment year is AY 2025-26.

Taxpayers must specify if they are discontinuing or re-entering the default tax regime. This decision impacts the tax deductions, rates, and exemptions applied to their income.

The discontinuation of a tax regime must be clearly stated along with the commencement date of the new regime.

Verification regarding the individual's income falling under the category of "Profits and Gains of Business and Profession" is essential.

A straightforward confirmation in ‘yes/no’ is required for the presence of any units in IFSC (International Financial Service Centre) as per sub-section (1A) of Section 80LA. If affirmative, detailed information about the unit should be provided.

Filing of Form 10 IEA by taxpayer

Step 1: Go to the e-Filing portal and click login.

Step 2: On Login Page enter your user ID and password.

Step 3: On your Dashboard, Go to e- File menu > Income Tax Forms > File Income Tax Forms.

Step 4: On the page- File Income Tax Forms -‘Persons with Business/Professional Income -select the option-Form-10IEA.

Alternatively, enter Form 10IEA in the search box to file the form.

Step 5: On the Form 10 IEA page, select the relevant Assessment Year and click on continue.

Step 6: Check the documents required for filing the form and Click on Let’s Get started

Step 7: Select Yes if you have Income under the head “Profits and gains from business or profession” during the assessment year.

Step 8: Select the Due date applicable for of filing of return of income and click continue.

Note: Please use “Help document” by clicking on help document hyperlink for the help for selecting the applicable due date.

Step 9: Click ‘Yes’ to Confirm the selection of the regime.

Step 10: Form has three section -confirm each section.

Click on Basic Information section

Step 11: In Basic Information section, your basic information will be prefilled. If it is first time filing of form then opting out option will be auto-selected and if system has valid form with opting out option, then re-entering option will be auto-selected click on Save draft.

Step 12: Fill the necessary details in Additional information section related to IFSC unit (if any) and click on save.

If you are opting out of new Tax regime this Additional Information panel will be greyed off

Step 13: Fill the necessary details in Declaration and verification section of the form, and click on save.

Step 14: Check the all the details furnished in the form. you can edit the details by clicking on edit button otherwise click on Proceed to e-verify button.

Step 15: Select the Relevant option from below options to verify the form

Step 16: After verification Click on yes to Submit the Form.

Step 17: Now Form is submitted Successfully Note the Transaction id for the future reference.

Now, if taxpayer wants to View filed form Go to the e-file menu > View filed forms > Form 10 IEA You can download the Form and receipt. click on View details to see the life cycle of form

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What are the Components of Form 10-IEA?

Form 10-IEA, introduced by the CBDT for selecting the old tax regime, mandates taxpayers to furnish the following vital information:

Name: Taxpayers must furnish their full name as recorded in official documents. It is necessary to ensure alignment between the name in Form 10-IEA, PAN card, and other relevant records.

Permanent Account Number (PAN): Taxpayers are required to provide their PAN, a unique identification number assigned by the Income Tax Department. Accurate entry of PAN is crucial as it serves as an important identifier in Form 10-IEA.

Assessment Year (AY): Taxpayers should specify the relevant Assessment Year for opting for the old tax regime. The Assessment Year follows the Financial Year under assessment. For instance, if an individual chooses the old tax regime in FY 2023-24 the corresponding assessment year is AY 2024-25.

Opting Out or Re-entering the Default New Tax Regime: Taxpayers must indicate if they are opting out of the default new tax regime or re-entering it. This decision governs the applicable tax rates, deductions, and exemptions for their income.

Relevant Dates: Form 10-IEA necessitates taxpayers to specify the dates for opting out and entering the new regime. Precision in mentioning these dates is crucial for clarity and adherence to prescribed timelines, ensuring they fall within the applicable Financial Year.

If you wish to continue with the old tax regime, don’t forget to file Form 10-IEA before the ITR filing due date, i.e., 31st July 2025. Also, Form 10-IEA can only be filed electronically either using a digital signature or an electronic verification code. If you still have doubts or need assistance with anything tax-related, Tax2win’s tax experts are here to guide you through every step. Get Tax Consultancy Now!

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