Filing for AY 2024-25 is coming soon

Keep calm and sign up for early access to our super filing platform

AI Summary to Minimize your effort

Index

Form 10IE- Option to choose New tax regime | How to Submit Form 10IE online?

By Ektha Surana

Updated on: Mar 29th, 2024

10 min read

Want to opt for new tax regime? You must file Form 10IE before filing your income tax return (ITR).

The Budget 2020 introduced a new regime under section 115BAC giving individuals and HUF taxpayers an option to pay income tax at lower rates. The new tax regime system came into force from FY 2020-21 (AY 2021-22). Until FY 2022-23, the old tax regime used to be the default regime, whereas the new tax regime was the optional one where taxpayers must opt in.

Whereas Budget 2023 amended the tax provisions and made the new tax regime the default tax regime from FY 2023-24 and onwards.

While filing for FY 2022-23, if the assessee wants to opt for the new tax regime instead of the default old tax regime, he should file Form 10IE before filing his income tax return (ITR).

Form 10IE is a declaration made by the return filers for choosing the ‘New Tax Regime’. Individuals or HUFs with business or professional income must submit Form 10IE if they wish to pay income tax as per the new tax regime. By submitting this form, they can inform the income tax department of their choice.

On the other hand, taxpayers who do not have income from business or profession can simply select the new regime in the ITR form without the need to file Form 10IE.
Simply put, only those who file ITR-3 and ITR-4 need to submit Form 10IE. People filing their returns in other Forms like ITR-1 or 2 are not required to submit Form 10IE.

If you are filing for FY 2023-24 and want to opt for the old tax regime instead of the default new tax regime, you must file Form 10IEA before filing your income tax return (ITR).

Similar to Form 10IE, this form is applicable for only to those who file ITR-3 and ITR-4 need to submit Form 10IE. People filing their returns in other Forms like ITR-1 or ITR- 2 are not required to submit. Click here to know more about Form 10IEA.

What is the new tax regime?

The new tax regime allows for lower tax rates while most of the deductions and tax benefits allowed in the old tax regime are not allowed.
Click here to check the income tax slab applicable to you as per the new and old tax regime.

The choice between old vs new tax regime must be made and submitted in Form 10IE before filing the income tax return.

When to submit Form 10IE?

Form 10IE has to be filed BEFORE filing your income tax return. After submitting Form 10IE, a 15-digit acknowledgement number will be generated. Taxpayers cannot proceed with their ITR filing under the new tax regime without mentioning this 15-digit acknowledgement number.

Time limit for filing Form 10IE

Individuals with business income can file Form 10IE before the due date of filing ITR, i.e. as follows:

For individuals and Hindu Undivided Families (HUFs) who do not have to get their accounts audited, the due date for filing Form 10IE is on or before the due date of filing the income tax return (ITR) for the relevant assessment year (AY). For example, for AY 2024-2025, the due date for filing ITR is 31st July 2024. Form 10IE should be filed before filing the Income Tax Return.
For individuals and HUFs who are required to get their accounts audited, the due date for filing Form 10IE is on or before the due date of filing the audit report under section 44AB of the Income Tax Act. For example, for AY 2024-2025, the due date for filing the audit report is 30th September 2024.

How to File Form 10IE?

Follow these steps for filing Form 10IE online:
Step 1: Login on the e-filing portal

Step 2: On the dashboard, click ‘e-File’ > ‘Income tax forms’ > ‘File Income Tax Forms’

Step 3: Scroll down to select Form 10-IE. Alternatively, enter Form 10-IE in the search box. Click on ‘File now’ button to proceed.

Step 4: Select the Assessment Year for which you are filing the return. For eg: If you are filing taxes for the income earned in FY 2022-23, then select AY 2023-24.

Step 5: On clicking 'Let's Get Started', Form 10-IE will be displayed. Form 10-IE has 4 sections:
(a) Assessing Officer
(b) Basic Information
(c) Additional Information
(d) Verification
First section is ‘Assessing Officer’. The details in this section are pre-filled. You only have to ‘confirm’ these details.

Step 6: Basic Information
Under Basic Information section, all your basic information like Name, PAN, Address are auto-filled. You will be required to provide the following information:

Whether you have any income from business or profession? (Select ‘Yes’)
Now select the ‘Nature of Business’. You may choose multiple business codes, if applicable.

Step 7: Additional Information

Under this section, you will be required to provide details of IFSC units (if any) and provide the required details like name and address of the unit and nature of business.
Select "Yes" if you opted for the new regime in any of the previous years but are now opting for the old regime in the current year. Once done, save the information

Step 8: Verification
Verification section contains self-declaration where you will be required to check the boxes and agree to the terms and conditions. Verify whether all the details are correct and save the information. Once done, click on ‘Preview’ to review Form 10IE.

Step 9: After reviewing all the information, ‘Proceed’ to e-verify'. You can e-verify either through:

Aadhaar OTP
Digital Signature Certificate (DSC)
Electronic Verification Code (EVC)

Step 10: After successful e-Verification, a success message is displayed along with a Transaction ID and an Acknowledgement Receipt Number. Please keep a note of the Transaction ID and Acknowledgement number for future reference. You will also receive a confirmation message on your email ID registered with the e-Filing portal. You can also download the form and locate the acknowledgment number.
To download the filed form, go to ‘e-File’ → 'Income Tax Forms' → 'View Filed Forms'.

Step 11: After submitting the form, you may proceed with filing your return. On ClearTax, go to the 'Tax Summary' tab and add the required details under ‘Form 10-IE’ section as shown below.

Contents of Form 10IE

Basic details required to file Form 10IE are mentioned below:

Name of the individual/HUF
Confirmation of whether the individual or HUF have any income under ‘Profit or gains from business and profession.
PAN number
Address
Date of birth/date of incorporation
Nature of business/profession (mandatory in case of business income)
Confirmation in ‘yes/no’ of whether the taxpayer has any unit in IFSC (International Financial Service Centre) as mentioned in sub-section (1A) of section 80LA. Suppose the answer is ‘Yes’, then details of the unit to be provided.
Details of Form 10IE previously filed.
Declaration

How to switch between old and new tax regime?

Individuals having ‘Income from Business or Profession’	Individuals having income ‘other than business or profession income’
Individuals with business income will not be eligible to choose between the two regimes every year. Once they select new tax regime, they have only once in a lifetime option for switching back to the old regime. Once they switch back to the old regime, they won’t be able to choose a new regime anytime in future.	An individual with salaried income and no business income can switch between the new and old tax regimes every year.
Hence, people with business income probably will have to file Form 10IE twice in lifetime – - once to choose the new tax regime and - the second time for switching back to the old regime.	Salaried individuals are not required to file Form 10IE. They can simply opt for new regime through the ITR forms.

e-Filing of Form 10IE

The taxpayers should file Form 10IE electronically on the income tax e-filing portal
The form must be e-verified using either the digital signature certificate or through an Electronic Verification Code (EVC) or Aadhaar OTP.

How to download the paper copy of Form 10IE?

Click here to download Form 10IE

Frequently Asked Questions

Who should file Form 10IE?

Taxpayers who want to opt for the new tax regime and have Income under the head “Profits and Gains of Business and Profession" should file Form 10IE.

What if I forget to file Form 10IE?

If the taxpayers forget to fill the Form 10IE before or at the time of filing of ITR, they will not be able to opt for the new tax regime. They cannot benefit from the concessional tax rates under the new regime. The income tax department will calculate tax based on the old tax regime.

Can I choose to file my return with a new tax regime if I have opted for the old tax regime for TDS deduction by my employer?

Only salaried individuals can opt out of any of the regimes every year. Also, the taxpayer is free to choose a different regime at the time of filing their ITR which is different from the one they chose for TDS deduction with the employer.

Which is better between the old tax regime and the new tax regime?

No single regime is beneficial for all. Both the regimes come with their benefits and shortcomings. However, we can give you some insight into both the regimes :

The new tax regime is expected to largely benefit taxpayers who have a taxable income up to Rs 15 lakh, whereas, in the case of high-income earners above Rs 15 lakh, the old regime would be a better option.
Also, as the new income tax regime does not allow any tax benefits or deductions, it is generally beneficial for low investment people. As the new regime offers seven income tax slabs, anyone paying taxes without claiming tax deductions can benefit from paying a lower rate of tax under the new tax regime.
That being said, if you already have in place a financial plan by making investments in tax-saving instruments; medical and life insurance; making payments of children’s tuition fees; payment of EMIs on education loan; buying a house with a home loan; and so on, the old regime helps you with higher tax deductions and lower tax outgo.

Hence, it is advisable to do a comparative evaluation and analysis under both regimes and then choose the most beneficial one as it may vary from person to person.

You can compare the tax outflow using Tax Calculator by ClearTax, which gives tax outflow in both old scheme and new scheme and will prompt you with the most beneficial regime for you.

Can I switch to the old tax regime while filing the ITR?

Only Individuals or HUF taxpayers having no income from business or profession can opt for any of the regimes every year.

I do not have any business income. While filing Form 10IE, I am unable to select “No” under “Basic Information” tab. What should I do?

In case you don’t have any business income and are required to file ITR 1/ ITR 2, there is no need to file Form 10-IE in order to opt for the new tax regime under Section 115BAC of the Income Tax Act, 1961. The option to exercise the benefit under Section 115BAC, in case you have business income, can be claimed while filing the respective ITR form (ITR 1/ ITR 2).

Is Form 10IE mandatory to file?

Yes, it is mandatory to file Form 10IE if you want to opt for the new tax regime and have Income under the Head “Profits and Gains of Business and Profession.

While submitting the form 10IE, it displays “Invalid Input” or “Submission Failed!”. What should I do?

Before filing Form 10-IE, please update “Contact Details” (or “Key Person Details” in case you are a HUF) under “My Profile” and ensure that all mandatory fields are filled.

After updating your Contact details from your profile, you can re-login and try again.

About the Author

Ektha Surana

Content Marketer

Multitasking between pouring myself coffees and poring over the ever-changing tax laws. Here, I've authored 100+ blogs on income tax and simplified complex income tax topics like the intimidating crypto tax rules, old vs new tax regime debate, changes in debt funds taxation, budget analysis and more. Some combinations I like- tax and content, finance & startups, technology & psychology, fitness & neuroscience. Read more

Quick Summary

To opt for the new tax regime introduced in Budget 2020, taxpayers must file Form 10IE before filing their Income Tax Return (ITR). Form 10IE is for individuals and HUFs with business or professional income to inform the Income Tax Department about their choice. Those without such income can simply select the new regime in the ITR form. Filing Form 10IE is essential for those filing ITR-3 and ITR-4. Form 10IEA is for switching back to the old tax regime.