The income tax regime underwent a significant shift starting Assessment Year (AY) 2024–25, with the new tax regime (Section 115BAC) becoming the default option for taxpayers. However, many individuals and professionals still prefer the old tax regime due to its various exemptions and deductions. This shift has raised a key compliance question:
Do you need to file Form 10-IEA every year to opt out of the new tax regime and continue with the old one?
Let’s break it down clearly.
What is Form 10-IEA?
Form 10-IEA is the prescribed form notified by the Income Tax Department under Rule 21AGA for individuals, Hindu Undivided Families (HUFs), and Associations of Persons (AOPs) to:
- Opt into the new tax regime, or
- Opt out of the default new regime in favor of the old tax regime
This form applies from AY 2024–25 onward, replacing the earlier Form 10-IE, which was used for AY 2021–22 to AY 2023–24.
Who Needs to File Form 10-IEA?
Whether or not you need to file Form 10-IEA depends on the type of taxpayer you are:
1. For Salaried Individuals (No Business/Profession Income):
- You can choose the old or new regime every year while filing your ITR.
- Form 10-IEA is NOT mandatory for opting out of the new regime.
- Simply choose the old tax regime within the ITR form before submission.
✅ No need to file Form 10-IEA every year.
2. For Individuals/HUFs with Business or Profession Income:
- The choice of tax regime must be made more formally.
- You must file Form 10-IEA before filing the ITR to opt out of the new regime.
- Once you opt out, you cannot switch back to the new regime unless you cease business/profession income in the future.
✅ Form 10-IEA is mandatory if opting out.
⛔ You cannot change the regime every year freely.
When and How to File Form 10-IEA?
- Timeline: Before the due date of filing your Income Tax Return (usually July 31 for individuals)
- Mode: Must be filed electronically through the Income Tax e-Filing Portal
- Pre-requisite: Valid PAN and e-verification via Aadhaar OTP, DSC, or EVC
Summary Table
| Type of Taxpayer | Has Business Income? | Want to Opt Out of New Regime? | Form 10-IEA Required? |
|---|---|---|---|
| Salaried Individual | ❌ No | ✅ Yes | ❌ No |
| Professional or Business Owner | ✅ Yes | ✅ Yes | ✅ Yes (Once) |
| Salaried + Freelance Income | ✅ Yes | ✅ Yes | ✅ Yes |
Key Takeaways
- Form 10-IEA is only mandatory for those with business or professional income who want to opt out of the new regime.
- Salaried individuals without business income do not need to file Form 10-IEA.
- Ensure Form 10-IEA is filed before ITR filing deadline.
📅 Important Due Dates for Filing Form 10-IEA :
Category of Taxpayer |
Assessment Year | Due Date for Filing Form 10-IEA | Remarks |
|---|---|---|---|
| Individual/HUF with business income | AY 2024–25 onwards | On or before 31st July 2024 | Same as the due date for filing ITR under Section 139(1) |
| Individual/HUF with audit requirement | AY 2024–25 onwards | On or before 31st October 2024 | If audit under Section 44AB is applicable |
| Partner in a firm liable for audit | AY 2024–25 onwards | On or before 31st October 2024 | Partners get the same ITR due date as the firm |
| Company or LLP (if opting under 115BAC) | AY 2024–25 onwards | On or before 31st October 2024 | Applicable only if eligible under 115BAC (in specific cases) |
| Salaried Individuals (no business income) | AY 2024–25 onwards | Not Applicable | They can choose regime directly in the ITR — no Form 10-IEA filing needed |
📝 Note: These dates are based on current income tax provisions and may be extended by the government. Always check the official e-Filing portal or circulars for updates.
🔍 Frequently Asked Questions (FAQs) on Form 10-IEA and Opting Out of New Tax Regime
1. Is Form 10-IEA mandatory for salaried individuals?
No. If you are a salaried individual with no business or professional income, you do not need to file Form 10-IEA. You can select the old or new tax regime directly in the ITR form each year.
2. Do I need to file Form 10-IEA every year if I have business income and want to stay in the old regime?
No. You need to file Form 10-IEA only once, as long as you continue in the old regime. Once you opt out of the new regime, that choice remains valid for future years unless you opt back in (which is allowed only once after ceasing business income).
3. Can I switch back to the new tax regime after opting out via Form 10-IEA?
Yes, but only once in your lifetime, and only if you no longer have business or professional income. Otherwise, you must continue with the old regime once opted.
4. What is the deadline to file Form 10-IEA?
Form 10-IEA must be filed before the due date of filing your Income Tax Return — typically July 31 for individuals (unless extended by the government).
5. Can I file Form 10-IEA after submitting my ITR?
No. Form 10-IEA must be filed before you submit your ITR. If not filed in time, you will be taxed under the default new regime for that year.
6. What happens if I forget to file Form 10-IEA and submit my ITR under the old regime?
If you're a business/professional taxpayer and fail to file Form 10-IEA before submitting your ITR, your selection of the old regime won’t be valid, and your return may be processed under the new regime by default, possibly resulting in higher taxes or notices.
7. How do I check if Form 10-IEA has been successfully filed?
You can verify the status on the Income Tax e-Filing Portal under:
e-File → Income Tax Forms → View Filed Forms.
8. Is Form 10-IEA applicable for senior citizens and pensioners?
Only if they have business or professional income. Otherwise, like salaried individuals, they can choose the regime within the ITR form itself.
