FORM 10-IEA

What is Form 10-IEA?

Form 10-IEA is a declaration form that allows certain taxpayers to opt out of the new tax regime and choose the old tax regime under Section 115BAC of the Income Tax Act. Additionally, those who previously opted out but wish to re-enter the new tax regime must file this form.

Since the new tax regime is now the default, individuals and Hindu Undivided Families (HUFs) without business or professional income can switch regimes directly while filing their ITR. However, business owners, professionals, AOPs (Association of Persons), BOIs (Body Of Individuals), and AJPs (Artificial Juridical Person) must file Form 10-IEA within the due date to opt out of the new regime.
 

Who Should File Form 10-IEA? What is the Purpose of Filing Form-IEA?

The following categories of taxpayers are required to submit Form 10-IEA:

1. Individuals, HUFs, AOPs (other than cooperative societies), BOIs, and Artificial Judicial Persons (AJP) who have income from business or profession and wish to opt for the old tax regime.
2. Taxpayers who had earlier chosen the old tax regime but now want to switch back to the new tax regime.
3. Taxpayers falling in the above categories who fail to submit Form 10-IEA in time will be taxed under the new tax regime by default.
    

Who Does NOT Need to File Form 10-IEA?

Salaried employees and HUFs without business or professional income do not need to file Form 10-IEA. They can simply choose their preferred tax regime while filing their ITR every year.
 

Why is Form 10-IEA Important? Important Things You Must Know

• Mandatory for Business Owners & Professionals: If you earn income from business or profession and wish to opt for the old tax regime, you must file Form 10-IEA before the ITR filing deadline.
• Ensures Compliance with Tax Laws: The Income Tax Department requires taxpayers to declare their tax regime preference to avoid any confusion in tax calculations.
• One-Time Reversal for Business Owners: If you switch to the old tax regime using Form 10-IEA, you can later opt back into the new regime, but only once.

New Tax Regime vs. Old Tax Regime

Here is a comparison between the new tax regime and the old tax regime for FY 2024-25:

Please note, starting from (FY 2025-26 and AY 2026-27) the government has revised the tax slabs under the new tax regime, ensuring that incomes up to ₹12 lakh are entirely tax-free and the above slab is applicable for incomes that exceed Rs. 12 lakh.

Key Differences

• New Tax Regime: Lower tax rates, but no deductions/exemptions (e.g., 80C, HRA, LTA, etc.).
• Old Tax Regime: Higher tax rates, but allows deductions and exemptions, helping in reducing taxable income.
   

How to File Form 10-IEA Online? How do you select the old tax regime in ITR?

Taxpayers having Business Income can use Form 10 IEA to “Opt out or Re-enter” in the New Tax Regime.

Step 1: Log in to the Income Tax e-Filing Portal
Visit www.incometax.gov.in.
Use your PAN/Aadhaar and password to log in.

Step 2: Navigate to the Form 10-IEA Section
Go to e-File > Income Tax Forms.
Select Form 10-IEA from the list.

Step 3: Fill in the Required Details
Assessment Year: Choose the relevant assessment year (e.g., AY 2025-26 for FY 2024-25).
Personal Information: PAN, name, and contact details will be auto-filled.
Business/Professional Income Details (if applicable).
Select Tax Regime: Confirm your choice to opt out of the new tax regime or re-enter it.

Step 4: Submit and Verify
Verify using Aadhaar OTP, Digital Signature Certificate (DSC), or EVC (Electronic Verification Code).
Upon submission, you will receive an acknowledgment number.
 

Due Date for Filing Form 10-IEA

• Form 10-IEA must be filed before filing your ITR.
• For FY 2024-25 (AY 2025-26), the ITR deadline is 31st July 2025 (unless extended).
   

Consequences of Not Filing Form 10-IEA

• If you fail to submit Form 10-IEA, the new tax regime will automatically apply.
• Business owners & professionals who miss the deadline cannot opt for the old tax regime for that year.
   

Conclusion

Form 10-IEA is an important compliance requirement for taxpayers with business or professional income who wish to opt out of the default new tax regime. It must be filed before the ITR deadline to ensure the correct tax regime applies.

Failing to file this form on time could result in automatic enrollment into the new tax regime, potentially leading to a higher tax liability for those who benefit from deductions and exemptions available under the old regime. Therefore, timely submission is essential to ensure that the preferred tax regime is applied while filing the Income Tax Return (ITR).

By understanding the purpose, eligibility, and filing process of Form 10-IEA, Indian taxpayers can make well-informed financial decisions. Proper compliance with tax regulations not only helps in tax savings but also avoids legal complications. Keeping track of deadlines and consulting a tax expert if needed can ensure a smooth and hassle-free tax filing experience.