Taxpayer Opting for Old Income Tax Regime must fill Form 10-IEA as New Tax Regime is Default Regime:

Taxpayer Opting for Old Income Tax Regime must fill Form 10-IEA as New Tax Regime is Default Regime Income tax assessees will have to fill a form to continue with the old income tax regime before the last date of filing of returns. The Income Tax Department has notified the new form. The Department has also come out with new provisions for disallowance under the new regime. The new income tax regime proposes reduced tax rates in the absence of different exemptions. Introduced in Assessment Year 2021-22, the system has been modified to make it the default choice in Assessment Year 2024-25. Assessees, on the other hand, will have the option of staying with the existing arrangement. For this, a new form 10-IEA needs to be filed. Individual taxpayers not having any business income can opt out of the new tax regime in the returns itself and are not required to file Form 10-IEA. Form 10-IEA is required to be filed before the due date of filing the income tax returns and the taxpayers (not having business income) can opt for the old tax regime only if they are filing tax returns before the due date. The proposed amendments are consequential to the changes introduced vide Finance Act, 2023 to the new tax 115BAC.