Form 10-IEA: Option to Choose Old Tax Regime | How to Fill & Submit Form 10IEA Online?
Updated: 6 days ago
From FY 2023-2024 and onwards, taxpayers are facing major changes in tax rules. The new tax regime is now the standard choice, with simpler tax brackets and lower rates, but it does not allow for most deductions and exemptions. In this new regime, a key document every taxpayer should know about is Form 10-IEA. This form is essential for switching between tax regimes, making it important for anyone looking to save the most on taxes. Let's look at what Form 10-IEA is and why it matters in the changing tax world..
Table of Contents
What is Form 10-IEA?
Form 10-IEA is an updated tax filing document that allows taxpayers to switch between the new tax regime (which is the default regime from FY 2023-2024) and the old tax regime. This form is designed to give taxpayers the option to use the deductions and exemptions available under the old regime, even if they are automatically placed in the new regime.
Purpose of Filing Form 10-IEA
Form 10-IEA is designed to help taxpayers decide between two different tax regimes. The new regime has lower tax rates but doesn't allow many deductions and exemptions. On the other hand, the old regime lets you claim popular deductions like those under Sections 80C, 80D, and 80E, as well as benefits for housing loan interest. By filling out Form 10-IEA, you can switch back to the old regime if you find that you would pay less tax with these deductions.
Amendments Reflected in Form 10-IEA
Form 10-IEA has been updated to reflect changes in tax policies. Since Form 10IE is no longer used for the FY 2023-2024 financial year, Form 10-IEA now takes its place, especially for those without business income. The main updates include:
Simplified declarations for individuals and HUFs without business income.
New sections for specific allowances and exemptions available under the old regime.
Automated checks to verify eligibility for deductions when switching to the old regime.
How to Switch Back to the Old Tax Regime?
Taxpayers who wish to switch back to the old tax regime can do so by submitting Form 10-IEA. This form should be filed when they are submitting their Income Tax Return (ITR). The form must be completed before or during the ITR filing process, ensuring all eligible deductions are claimed. For those with business income, the form only needs to be submitted once, but salaried individuals or HUFs without business income can change tax regimes each financial year.
When to Submit Form 10-IEA?
Form 10-IEA should be submitted at the same time as the ITR for the relevant financial year. It is crucial to submit it before filing the return, as once the ITR is processed under the new tax regime, switching back is not possible for that year.
Verification of the Form 10-IEA
After submitting Form 10-IEA, the Income Tax Department checks to make sure the taxpayer can switch back to the old tax regime. This check involves looking at the deductions claimed, the type of income reported, and making sure all tax laws are followed. Once this is done, the taxpayer can get the deductions available under the old regime.
Why is Form 10-IE Discontinued?
Since the new tax regime became the standard starting from FY 2023-2024, Form 10-IE was stopped because it was used to choose the new regime. Now that the new regime is the default, the focus is on those who want to go back to the old regime, which is why Form 10-IEA was introduced. This transition simplifies the process for most taxpayers while offering flexibility for those preferring the old regime’s benefits.
Details to Fill in Form 10-IEA
To switch from the new tax regime to the old one, you need to fill out Form 10-IEA with correct and complete information. Here’s what you will need:
Personal Information
PAN (Permanent Account Number): Your unique identification for tax purposes.
Full Name: As per your PAN records.
Residential Address: Current address details.
Contact Information: Email address and mobile number for any communication from the Income Tax Department.
Financial Year
Specify the Financial Year (FY) for which you are opting to switch regimes. In this case, it would be FY 2023-2024.
Type of Taxpayer
You must indicate whether you are an Individual or belong to a Hindu Undivided Family (HUF).
If you have business or professional income, you will need to select the appropriate option, as this can affect the regime switching rules.
Income Details
Total Taxable Income: You need to report your gross income from all sources such as salary, house property, capital gains, etc.
Income Under Business/Profession: If applicable, provide details of your income from business or professional sources.
Other Incomes: Any income from interest, dividends, or other sources should be disclosed.
Deductions and Exemptions
Section 80C to 80U Deductions: You should list out all deductions you intend to claim, such as PPF, ELSS, Life Insurance Premiums, etc.
HRA (House Rent Allowance): If you are claiming HRA exemption, the amount and the rent receipts should be detailed here.
Home Loan Interest: The interest portion of your home loan can be claimed under Section 24.
Declaration of Regime Opt-Out
Explicitly declare that you wish to opt-out of the new regime and switch to the old tax regime. You also need to certify that this decision has been made based on the benefits you anticipate from deductions and exemptions.
Verification of Information
Sign a declaration confirming that the information provided is correct and accurate to the best of your knowledge. For online submission, this is usually done via digital signature or Aadhaar OTP.
How to File Form 10-IEA
The process of filing Form 10-IEA is straightforward, but it is crucial to follow all steps correctly to avoid any issues. Here’s a step-by-step guide on how to file the form:
1. Login to the Income Tax e-Filing Portal
Start by visiting the official Income Tax Department e-filing portal. Use your PAN and password to log in. If you are a new user, you will need to create an account.
2. Navigate to the Form Submission Section
After logging in, go to the section labeled ‘Income Tax Forms’ or ‘e-File’.
Select the relevant form, which in this case is Form 10-IEA. Make sure that you are selecting the form for the correct financial year (FY 2023-2024).
3. Select the Old Regime
On the form selection page, you will be asked to choose between the new tax regime and the old tax regime. Select the old regime if that is your preferred option.
The system will prompt you to fill in Form 10-IEA to confirm your choice to switch.
4. Fill Out the Form
Enter the necessary personal information, income details, and deductions as outlined earlier. Ensure that all information matches your income documents and any proof of deductions claimed.
Double-check all figures, especially the ones related to gross income and deductions.
5. Submit and Verify
After completing the form, submit it electronically. The system will prompt you to verify your submission.
You can verify using options such as Aadhaar OTP, Digital Signature Certificate (DSC), or Electronic Verification Code (EVC).
6. Confirmation and ITR Filing
Once your form has been successfully submitted and verified, you will receive an acknowledgment on the portal and via email.
You can then proceed with filing your Income Tax Return (ITR), using the selected old tax regime.
7. Keep a Copy for Your Records
Always download and save a copy of your Form 10-IEA for future reference. This will be useful if there are any discrepancies during the assessment or verification process.
FAQ
Q1. Do I need to file Form 10-IEA every year?
For salaried individuals or HUFs without business income, Form 10-IEA needs to be filed annually if they wish to switch from the default new regime to the old regime. Taxpayers with income from Business or Profession shall file it only once.
Q2. Can I switch to the old regime after filing my ITR?
No, once your ITR is filed under the new regime, switching is not allowed for that financial year. The regime selection must be made before submitting your ITR.
Q3. Is Form 10-IEA mandatory for all taxpayers?
No, Form 10-IEA is only required for taxpayers who wish to opt out of the new tax regime and switch to the old regime. It is not mandatory for those who want to continue with the default new regime.
Q4. What happens if I do not submit Form 10-IEA?
If you don’t furnish Form 10-IEA, you will automatically be taxed under the new tax regime and cannot claim deductions available under the old regime.
Q5. Is there a penalty for not filing Form 10-IEA on time?
There is no direct penalty for not filing Form 10-IEA, but if you fail to file it and your ITR is processed under the new regime, you will not be able to switch to the old regime for that year.
Q6. Can I file Form 10-IEA if I have business income?
Yes, but the taxpayers with income from business or profession need to file Form 10-IEA only once when opting for the old regime. After that, they cannot switch between regimes annually.
Q7. Is Form 10-IEA mandatory if I want to remain in the new tax regime?
No, you only need to file Form 10-IEA if you want to switch from the new tax regime to the old tax regime. The new regime is now the default, so no action is required if you want to continue with it.
Q8. Can I switch tax regimes multiple times during the financial year?
No, switching tax regimes is only allowed once per financial year. Salaried individuals and HUFs can switch between regimes each year, but taxpayers with business income can only switch once.
Q9. Can I file Form 10-IEA offline?
No, Form 10-IEA is an online submission process. You must file it through the Income Tax Department’s e-filing portal.
Q10. Do I need any supporting documents while filing Form 10-IEA?
While you do not need to upload any supporting documents while filing Form 10-IEA, you should have all relevant documents such as income proofs and deduction receipts handy in case the Income Tax Department requests them later for verification.
Q11. What happens if I submit Form 10-IEA with incorrect details?
If you submit Form 10-IEA with incorrect information, you may not be able to switch tax regimes, and the Income Tax Department might assess your return based on the incorrect regime. Always double-check the details before submission.
Q12. Can I revise my ITR after filing Form 10-IEA if I made a mistake?
Yes, you can revise your ITR before the deadline. However, Form 10-IEA cannot be changed once submitted, so make sure to carefully consider which regime to opt for.
Can I file my return in new regime having income from Other source only even if I have filed Form 10IEA by mistake for AY 24-25