Form 10 IEA for Opting out of New Tax Regime is only required by ITR-3 and ITR-4. Not required in ITR-1 and ITR-2
CA Pratibha Goyal | May 6, 2025 |
Do we need to file Form 10 IEA for Opting out of New Tax Regime with every ITR Form
As the Income Tax Department has started notifying the Income Tax Return (ITR) Forms, taxpayers are also gearing up for the ITR filing season. Amid many queries, related to the filing of the return of Income is, one of the most common question is related to the Filing of Form 10 IEA for opting out of the New Tax Regime.
ITR Forms released:
ITR-6 and ITR-7 are still pending
From AY 2024-25, the new tax regime will be the default option. But every year Salaried Taxpayer, has an option to choose the Old Tax regime if they find it beneficial.
Individuals having business income are not eligible to choose between the new and old tax regimes every year. Once they have opted for the old tax regime, they only have a one-time option of switching back to the New tax regime in their lifetime. Once they switch back, they cannot opt for the old tax regime again.
No, for opting out of the new tax regime, the option should be exercised along with the return of income. Although the ITR must be filed before the due date. The Due Date for filing the ITR Form is 31st July for Non-Audit cases.
This means no Form 10 IEA is to be filed with ITR-1 and ITR-2.
Yes, people with business income have to fill out Form 10-IEA in case they are choosing the Old Tax Regime.
No, once you have opted for Old Tax Regime in Form 10-IEA, you need need to file the form again, unless you are opting out and choosing the New Tax Regime again. Once you opt out, you cannot file Form 10-IEA to choose back Old tax Regime.
Therefore, people with business income may have to fill out Form 10-IEA twice, once to use the Old tax regime and the second to switch back to the New regime.
As per the income tax laws, an individual having business income shall submit form 10-IEA before the due date of filing ITR i.e. July 31 under non-audit cases and 31st October under audit applicable cases.
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