ITR Filing 2025: Opting for Old Tax Regime? Submission of Form 10-IEA is Essential—Here's What You Need to Know

As the Income Tax Department has released the ITR-1, ITR-3, ITR-4, and ITR-5 forms, the process of filing income tax returns for Assessment Year (AY) 2025-26 (Financial Year 2024-25) is underway. Taxpayers, including salaried individuals, professionals, and pensioners, must choose between the New and Old Tax Regimes. While the New Tax Regime is now the default and requires no additional steps, those preferring the Old Tax Regime must submit Form 10-IEA.

Understanding Form 10-IEA

Form 10-IEA is a declaration used by taxpayers who choose to opt out of the New Tax Regime. Individuals, Hindu Undivided Families (HUFs), Associations of Persons (AOPs) (excluding co-operative societies), Bodies of Individuals (BOIs), or Artificial Juridical Persons with business or professional income must submit Form 10-IEA to revert to the Old Tax Regime. It is essential to submit the form before the deadline for filing income tax returns.

How to Fill Form 10-IEA

To file Form 10-IEA, taxpayers must have income from business or profession and file ITR-3 or ITR-4. Those without such income can opt out of the New Regime by selecting the "Opting out of new regime" option in the ITR form.

Taxpayers must provide their full name as per the PAN card and other official documents. They should mention the applicable assessment year when choosing the Old Tax Regime, aligning it with the fiscal year under assessment. For instance, opting for the Old Tax Regime in FY 2024-25 means the applicable assessment year is AY 2025-26.

Taxpayers must specify if they are discontinuing or re-entering the default tax regime. This decision impacts the tax deductions, rates, and exemptions applied to their income.

The discontinuation of a tax regime must be clearly stated along with the commencement date of the new regime.

Verification regarding the individual's income falling under the category of "Profits and Gains of Business and Profession" is essential.

A straightforward confirmation in ‘yes/no’ is required for the presence of any units in International Financial Service Centre (IFSC) as per sub-section (1A) of Section 80LA. If affirmative, detailed information about the unit should be provided.

The taxpayer's address, date of birth, type of business/profession (mandatory for business income), details of Form 10-IE previously submitted, and a formal declaration are also necessary.

Who Needs to Fill Form 10-IEA

Individuals who receive income from their profession or business must file Form 10-IEA by the deadline specified in Section 139(1). This submission is essential for transitioning from the New Tax Regime to the previous one.

The choice made on the form will determine the tax rules and regulations that apply to the taxpayer. Filling out Form 10-IEA requires providing important information like PAN number, assessment year, name, and current status. These details assist in effectively organizing and identifying taxpayer data.

Disclaimer:

This blog post is auto-generated for informational purposes only and should not be considered as financial or tax advice. For personalized guidance, please consult a qualified tax professional.