Everything about 10IEA: A Guide to Opting for the Old Tax Regime

What is 10 IEA and How is it different from 10-IE?

Previously, until the financial year2022-23, when the new tax regime was not the default option, individuals had to file Form 10-IE to opt into the new tax regime. However, starting from FY 2023-24, the new tax regime has become the default. This means that taxpayers will automatically be enrolled in the new regime unless they explicitly choose the old regime.

With the new default tax regime, individuals and Hindu Undivided Families (HUF) without any professional or business income can opt out of the new tax regime when filing their tax returns.

Form 10-IEA can be used by individuals, HUFs, Associations of Persons (AOP) (excluding cooperative societies), Bodies of Individuals (BOI), and Artificial Juridical Persons (AJP) with business or professional income to indicate their preference for the old tax regime. They must submit Form 10-IEA within the specified time frame under section 139(1) if they wish to switch from the new regime to the old one or to re-enter the new regime.

Step 1: Understanding the Purpose of Form 10IEA

As a tax professional, I understand the importance of staying up-to-date with the latest tax regulations and filing requirements. One such form that has gained significant attention is Form 10IEA, which is crucial for individuals who wish to opt into the old tax regime and claim various deductions and allowances that were previously available.

The introduction of the new tax regime has brought about several changes, but there are still many taxpayers who prefer the benefits offered by the old regime. Form 10IEA provides a mechanism for these individuals to exercise their choice and transition to the old tax regime, allowing them to claim deductions such as home loan interest, medical expenses, and various other allowances.

Step 2: Determining Applicability to File Form 10IEA

The Form can be filed by an Individual, Hindu Undivided Family (HUF), Association of persons (other than a cooperative society), Body of individuals (BOI), Artificial juridical person referred u/s 2(31)(vii) (AJP)

The requirement to file Form 10IEA depends on whether you have any income under the head "Profits and Gains from Business and Profession" (PGBP) during the assessment year. If you do not have any PGBP income, you are not required to file this form, and you can simply opt for the old tax regime within your regular income tax return.

However, if you do have PGBP income and wish to opt for the old tax regime to claim various deductions and allowances, then filing Form 10IEA becomes mandatory. This applies to Individual, Hindu Undivided Family (HUF), Association of persons (other than a cooperative society), Body of individuals (BOI), Artificial juridical person referred u/s 2(31)(vii) (AJP)

Step 3: Filing Form 10IEA on the Income Tax Portal

The process of filing Form 10IEA on the Income Tax portal is straightforward and can be completed in a matter of minutes. Here's a step-by-step guide:

• Login to your Income Tax portal account and navigate to the "e-File => Income Tax Forms => File Income Tax Forms" section.
  

• Locate the option for Form 10IEA: Determination of Tax in Certain Special Cases and click on "File Now".
  

• Ensure that your PAN number, submission mode, and IT filing type are correctly displayed, and the assessment year is set to 2024-25.
  

• Proceed to the next step by clicking "Continue".

• Answer the two simple questions presented to you, indicating whether you have any PGBP income during the assessment year. If the answer is "Yes," you can proceed to file the form.
  

• Select the applicable due date for your income tax return filing, which can be either July 31st, October 31st, or November 30th, depending on your specific circumstances.

• Review the warning message carefully, ensuring that you are filing the form within the applicable due date and that you understand the implications of opting into the old tax regime.

• In the "Basic Information" section, your details will be auto-populated. Simply review and save the information.

• Finally, complete the "Declaration and Verification" section by ticking the necessary declarations and submitting the form.

Step 4: Ensuring Timely and Accurate Filing

Due date of filing 10 IEA It is crucial to remember that Form 10IEA must be filed before the applicable due date for your income tax return. Failing to do so may result in the denial of the benefits associated with the old tax regime, and your tax will be calculated according to the new tax regime.

Additionally, once the form is validly filed, it cannot be withdrawn, so it is essential to carefully review the information and ensure that opting into the old tax regime is beneficial for you. Now the million dollar question would be When to Submit Form 10-IEA, before filing Income Tax return (ITR) or After filing Income Tax Return (ITR)?

The answer to also quite straightforward, Form 10-IEA should be filed on or before the due date of filing of return as specified u/s 139(1) of the Income Tax Act, 1961. In order to get the benefit of filing Form 10-IEA, it is advisable to file the form before filing of Income Tax Return. Acknowledgment Number and date of filing of Filed Form 10-IEA are required to be provided in the Income Tax Return.

FAQs related to 10 IEA

What happens if an individual doesn’t submit the Form 10-IEA timely?

If an individual forgets to complete the submission of Form 10-IEA before or during the filing of the ITR, they will be unable to choose the old tax regime. The delayed submission of the form of failure to submit means that the income tax department will compute tax as per the new tax regime.

Can 10-IEA be filed after the due date?

No. 10-IEA has to be filed on/before the due date to opt for the old tax regime. Filing it after the due date will make it invalid.

Can you opt for new tax regime after filing 10-IEA online?

It is not possible to opt-out of old regime and avail the benefit of the new tax regime for an assessment year once 10-IEA is filed.

Conclusion

In conclusion, Form 10IEA is a valuable tool for taxpayers who wish to take advantage of the benefits offered under the old tax regime. By understanding the eligibility criteria, the filing process, and the importance of timely submission, you can seamlessly transition to the old tax regime and claim the desired deductions and allowances.

In case of any doubt/clarification, you may reach out to me at cakrishnakumawat@gmail.com or