Form 10 IEA: Choosing the Old Tax System Made Simple
The new tax regime under Section 115BAC(1A) and the old tax regime with deductions and exclusions are the two tax regimes that the Indian government permits salaried individuals and specific taxpayers to select between. The taxpayer must submit Form 10-IEA in order to keep the old regime.
What is Form 10-IEA?
The Income Tax Department introduced Form 10-IEA, a statutory declaration form. If a taxpayer wants to take advantage of deductions like the HRA, Section 80C benefits, standard deduction, etc., they can choose to stay under the old tax regime and avoid the default new one. This is particularly relevant for taxpayers who make money from their business or profession.
Who Should File Form 10-IEA?
Some taxpayers do not need to file Form 10-IEA. It is only required for Hindu Undivided Families (HUFs) and persons who:
- Having earnings that are classified as “Profits and Gains of Business or Profession”, choose to stick with the old tax regime rather than the new tax regime that was implemented in AY 2024–2025.
- It is not required for salaried individuals without company or professional income to file Form 10-IEA. When submitting their ITR, they have the option to select the previous regime directly. Nevertheless, the regime is only effective for that financial year after it is chosen.
Form 10-IEA: Why Was It Introduced?
Taxpayers previously opted for the new regime using Form 10-IE. However, the new tax regime is now the default choice starting in AY 2024–2025. Therefore, Form 10-IEA must be submitted by those who want to stay under the old regime.
By switching to a low-rate, no-exemption system, the government is attempting to simplify taxes while still providing flexibility to individuals who like common deductions.
The Procedure to File Form 10-IEA (Step-by-Step Guide)
Follow these simple steps to file Form 10-IEA online through the Income Tax e-filing portal:
Step 1: Log in on the e-Filing Portal
- Visit: https://www.incometax.gov.in
- Click on ‘Login’.
- Enter your PAN, password, and captcha code.
Step 2: Go to Income Tax Forms
- On the dashboard, click:
- ‘e-File’ > ‘Income Tax Forms’ > ‘File Income Tax Forms’
Step 3: Search and Select Form 10-IEA
- Scroll down or enter ‘Form 10-IEA’ in the search box.
- Click ‘File Now’ next to the form.
Step 4: Select the Correct Assessment Year
- Choose the assessment year for which you’re filing the return.
- Example: For FY 2024–25, select AY 2025–26.
Step 5: Check Required Documents & Click ‘Let’s Get Started’
- You’ll be shown a list of details needed to file the form.
- Once ready, click ‘Let’s Get Started’.
Step 6: Declare Business/Profession Income Status
- If you have income under “Profits and Gains from Business or Profession”, select ‘Yes’.
- Select the applicable due date for filing the return, then click ‘Continue’.
- Click the “Help Document” link for support with due dates.
Step 7: Confirm Your Regime Selection
- Click ‘Yes’ to confirm you are opting for the old tax regime.
Step 8: Fill Out All 3 Sections of the Form
i. Basic Information
- Your name, PAN, assessment year, and status will be auto-filled.
- If this is your first time opting out, the “Opting Out” option will be selected by default.
- If you have previously filed Form 10-IEA, the “Re-entering” option will be auto-filled.
- Click ‘Save’.
ii. Other Information
- This section requires you to declare whether you have any IFSC unit (under Section 80LA).
- If applicable, enter IFSC details and click ‘Save’.
- If you’re opting out of the new regime, this panel may be blacked out.
iii. Declaration & Verification
- Review the declaration section carefully.
- Tick the confirmation boxes and verify the details.
- Click ‘Preview’ to check the entire form before submission.
Step 9: e-Verify the Form
Choose one of the methods below to e-verify:
- Aadhaar OTP
- Digital Signature Certificate (DSC) – required if under audit
- Electronic Verification Code (EVC) via net banking or pre-validated bank account
Step 10: Submit the Form
- After successful verification, click ‘Yes’ to submit the form.
Step 11: Acknowledgement
Once submitted, a success message appears on screen with:
- Transaction ID
- Acknowledgement Receipt Number
- Keep these details for reference.
To download the submitted form, go to:
- ‘e-File’ → ‘Income Tax Forms’ → ‘View Filed Forms’
Due date: According to Section 139(1) of the Income Tax Act, you must file Form 10-IEA prior to the deadline for filing your Income Tax Return (ITR). For the majority of people, this is July 31st after the financial year ends.
Absence of Compliance: If you do not submit Form 10-IEA by the ITR deadline, the system will presume that you are selecting the default new choice, and you will not be able to claim exemptions or deductions permitted under the previous regime.
Conclusion
Form 10-IEA is a crucial document for taxpayers who want to take advantage of common deductions and exemptions while maintaining the old tax regime. The government’s objective to provide flexibility while promoting a simpler system is reflected in it. ITR processing runs smoothly and eliminates unnecessary tax charges when it is filed accurately and on time. At filing time, knowing when and how to utilise this form can help you avoid problems and save money.