Form 10-IEA: Option to Choose Old Tax Regime | How to Fill & Submit Form 10IEA Online?

Form 10-IEA is useful for individuals or HUFs to continue utilising the old tax regime in the present financial year. It was presented by the Central Board of Direct Taxes. The Budget 2023 proposes that from FY 2023-24, the new tax regime will be considered the default tax regime. By filling out Form 10-IEA, taxpayers can choose the old tax regime if they wish. They must complete the form before the due date prescribed for filing an income tax return. Let’s first understand Form 10-IEA in detail and then go through its important aspects.

What is Form 10-IEA

As per Budget 2023, the new tax regime was announced as the default tax regime. Those taxpayers willing to choose the old tax regime must choose the option by navigating the required process. The filing of Form 10-IEA allows taxpayers to use their right to select between the new or old tax regime. Taxpayers who want to opt for the old tax regime must file Form 10IEA.

Collecting relevant information and mentioning the choice of tax regime and dates assists the government in maintaining transparency in Form 10-IEA. In addition to determining tax regime preference, the 10-IEA also intends to maintain precise and updated tax records.

Purpose of Filing Form 10-IEA

Before going through the process, let’s understand the purpose of Form 10IEA.

• Individuals with income sourced from profession/business must submit Form 10-IEA by adhering to the prescribed deadline under Section 139(1). They must do it to change their new tax regime to the old one.
• The corresponding choice determines the rules and regulations that would be applicable to the assessee.
• 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 categorise and identify taxpayer information.

Amendments Reflected in Form-10IEA

Until 2022-23, the new tax regime was not announced as the default tax regime. So, the individuals had to file Form 10-IE to express their intent to select the new tax regime. However, beginning from the financial year 2023-24, the new tax regime was established as the default tax regime. It indicates that if the taxpayer doesn’t declare the intent behind choosing the old regime, then they will be automatically taxed under the new regime.

The amendment benefits individuals without professional/business income who want to use the old tax regime. The revised procedure streamlines the process, enabling individuals without business or professional income to directly specify their preference while filing a tax return by selecting the preferred option.

How to Switch Back to Old Tax Regime?

As the new regime has been made the default regime from FY 2023-24, the taxpayers who want to opt for paying taxes under the old regime have to file Form 10-IEA. This form is to be filed by taxpayers having income from business or profession i.e. taxpayers filing ITR using ITR-3 or ITR-4. Taxpayers who do not have income from business or profession can simply tick the “Opting out of new regime” in the ITR form without the need to file Form 10-IEA. 

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 31^st). The timely submission guarantees adherence to tax rules and allows the tax authorities to seamlessly process your tax-related information. Note that after filing Form 10-IEA, you will get an acknowledgement number. The acknowledgement number is important for tracking the status of Form 10-IEA and referencing it in future communication. An individual needs to mention this number while filing an ITR.

Verification of the Form 10-IEA

Before an individual goes ahead and submits Form 10-IEA online, there must be thorough verification and validation of the form. The verification can be accomplished using an electronic verification code or a digital signature. Completing the verification process guarantees that the information specified in Form 10-IEA is legitimate and prevents deceitful activities.

Why is Form 10-IE discontinued?

• Before the introduction of Form 10-IEA, Form 10-IE was considered valid to choose the new tax regime. However, it has now been discontinued due to the adoption of the new tax regime as the default tax regime.
• The discontinuation of Form 10-IE allows the taxpayer to choose the old tax regime by filing Form 10-IEA.

Details to Fill in 10-IEA

Before going through the steps to fill Form 10-IEA online, you must know what details are to be filled out. The following section outlines the details an individual must fill in this form.

• Taxpayers should provide their full name exactly as per the one mentioned on the PAN card and other relevant official documents.
• To choose the old tax regime, it is vital to mention the applicable assessment year. Note that the assessment year would follow the fiscal year under assessment. For example, if a person chooses the old tax regime in FY 2023-24, the applicable assessment year is AY 2024-25.
• Taxpayers should also mention whether they are discontinuing or re-entering the default tax regime. The corresponding decision influences the tax deductions, tax rates, and exemptions made for their income.
• It is mandatory to mention the dates for discontinuing a tax regime and entering into another one.
• It is necessary to confirm whether the individual has income under the head of “Profits and Gains of Business and Profession.".
• It must be confirmed in ‘yes/no’ whether the taxpayer has any unit in IFSC (International Financial Service Centre) as specified in sub-section (1A) of Section 80LA. If that answer is ‘Yes,’ the taxpayer should provide the details of the unit.
• A taxpayer also needs to mention his/her address, date of birth, type of business/profession (compulsory in case of business income), information on the Form 10-IE filed previously, and declaration. 

How to File Form 10-IEA

Follow these steps for filing Form 10-IEA 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-IEA. Alternatively, enter Form 10-IEA 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 2023-24, then select AY 2024-25. 

Step 5: After checking the documents required for filing the form click on 'Let's Get Started'.

Step 6: Select "Yes" if you have Income under the head “Profits and gains from business or profession” during the assessment year. Select the due date applicable for filing of return of income and click on continue.

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

Step 7: Click ‘Yes’ to confirm the selection of the regime.

 Step 8: Form 10-IEA has 3 sections. Verify and Confirm each section. They are as follows:

i. Basic Information: In Basic Information section, your basic information will be pre-filled. If you are filing form for the first time 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’ button.

ii. Additional Information: 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

iii. Declaration and 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 10-IEA.

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 verification Click on 'Yes' to submit the Form.

Step 11: 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 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'.

Click here to download the form 10-IEA in pdf format.

Here’s a  picture sample of Form 10-IEA:

Other Articles:
1. Form 10IE- Option to choose New tax regime
2. Old vs New Tax Regime