Things to know about filling out Form 10-IEA | Fusion - WeRIndia

The new tax regime in India is now the default option for taxpayers, starting FY2023-24.

However, those who wish to claim deductions can opt for the old tax regime if it benefits them financially. Some of these deductions include home loan interest, House Rent Allowance, and Public Provident Fund.

For taxpayers earning income from business or profession and those filing Income Tax Returns (ITR) through ITR-3 and ITR-4, an additional step is required to choose the old regime.

These individuals must submit Form 10-IEA before the due date of their ITR filings.

Failure to submit this form in time will result in automatic enrollment in the new tax regime, potentially impacting their tax liabilities.

Form 10-IEA is crucial because it officially registers the taxpayer’s choice of the old regime. The old regime includes various exemptions and deductions not available in the new regime.

This is especially relevant for businesses and professionals, who have significant deductible expenses and investments.

On the other hand, salaried individuals who file their taxes using ITR-1 or ITR-2 have a simpler process. That means they don’t need to file this form.

They can indicate their preference for the old tax regime directly in their ITR filings without needing to submit Form 10-IEA.

In other words, salaried employees can easily switch between the regimes without any additional paperwork.

Procedure for Filing ITR:

For ITR-1 and ITR-2 filers:

• Select the old tax regime option in your ITR form and tax calculations will be done accordingly.

For ITR-3 and ITR-4 filers:

• File Form 10-IEA before the ITR due date.
• While filing your ITR, choose the old tax regime. Ensure the information matches with Form 10-IEA.

Details to Fill in Form 10-IEA:

• Provide full name as per PAN card and other official documents.
• Mention the applicable assessment year.
• Indicate whether discontinuing or re-entering the default tax regime.
• Mention dates for discontinuing one regime and entering another.
• Confirm if there is income under “Profits and Gains of Business and Profession.”
• Specify if there is any unit in IFSC under Section 80LA.
• Include address, date of birth, type of business/profession, previous Form 10-IE filings, and declaration.

If you (ITR-3 and ITR-4 filers) do not file form 10-IEA, it will be assumed that you have opted for the new tax regime.

As a result, your tax liability will be calculated according to the new regime. You may have to pay a higher tax if the old regime is more beneficial for you. So, please check carefully while opting for a regime.

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