Form 10 IEA > User Manual

1.Overview

Earlier, till FY 2022-23 when the new tax regime was not the default tax regime, individuals had to file Form 10-IE to specify their willingness to choose the new tax regime. However, starting FY 2023-24, the new tax regime has been set as the default tax regime. This means that if the taxpayer does not specify their intent to choose the old regime, they will be automatically enrolled in the new regime.

The default new tax regime indicates that individuals, HUF without any professional or business income can opt out of the new tax regime directly at the time of filing tax returns.

The new form 10 IEA can be used to indicate the preference for the old tax regime by Individuals, HUF, AOP (other than co-operative societies), BOI & Artificial Judicial Persons (AJP) having income from business and profession. They have to mandatorily submit Form 10-IEA within the specified time frame under section 139(1) if they want to switch their tax regime from new to old or if they want to re-enter in the new scheme.

2. Prerequisites for filing the Form

Valid User ID and Password.
Total Income of the Taxpayer includes Business Income.

3. About the Form

3.1. Purpose.

For business cases, form 10-IEA has been notified vide Notification No.43/2023 dated 21st June 2023 which can be used by taxpayers to exercise their right to choose between the old or the new regime .This form can be filed twice in lifetime i.e. one for opt out of new tax regime and one for re-entering in to the new tax regime.

3.2. Who can use it?

Taxpayer having Business Income can use Form 10 IEA to “Opt out or Re-enter” in the New Tax Regime.

4. Form at a Glance

The form 10 IEA is divided into three parts:

Basic information,
Additional Information

Declaration and verification

Here is a quick tour of the sections of Form 10 IEA:

4.1. Basic Information

Part 1 is the Basic Information (Name of Asseseee, PAN, AY and status of person) which will be. prefilled in the form. If it is first time filing of form then opting out option will be auto-selected and if system has valid form with opting out option, then re-entering option will be auto-selected.

4.2. Additional information

Part 2 is Related to Additional information where Assessee has to give Additional information related to IFSC unit (if any).

Please Note: If you are opting out of new Tax regime this Additional Information panel will be greyed off

4.3. Declaration and verification

Part 3 is Declaration and verification by the taxpayer for Opting out or Re-entering in to the new Tax Regime.

5. How to Access and Submit

5.1. Filing of Form 10 IEA by taxpayer

Step 1: Go to the e-Filing portal and click login.

Step 2: On Login Page enter your user ID and password.

Step 3: On your Dashboard, Go to e- File menu > Income Tax Forms > File Income Tax Forms.

Step 4: On the page- File Income Tax Forms -‘Persons with Business/Professional Income -select the option-Form-10IEA.

Alternatively, enter Form 10IEA in the search box to file the form.

Step 5: On the Form 10 IEA page, select the relevant Assessment Year and click on continue.

Step 6: Check the documents required for filing the form and Click on Let’s Get started

Step 7: Select Yes if you have Income under the head “Profits and gains from business or profession” during the assessment year.

Please Note:

It is mandatory to submit Form 10-IEA for Opt out or Re-entering in to New Tax regime by Individuals, HUF, AOP (other than co-operative societies),BOI & AJP who have income from business or profession.
Individuals, HUF without any business or professional income can opt out of the New Tax regime or Re-enter in to the New Tax Regime directly when they file their Income tax returns.

Step 8: Select the Due date applicable for of filing of return of income and click continue.

Note: Please use “Help document” by clicking on help document hyperlink for the help for selecting the applicable due date.

Step 9: Click ‘Yes’ to Confirm the selection of the regime.

Step 7: Form has three section -confirm each section.

i. Click on Basic Information section

Step 7: In Basic Information section, your basic information will be prefilled. If it is first time filing of form then opting out option will be auto-selected and if system has valid form with opting out option, then re-entering option will be auto-selected click on Save draft.

Step 8: Fill the necessary details in Additional information section related to IFSC unit (if any) and click on save.

If you are opting out of new Tax regime this Additional Information panel will be greyed off

Step 8: Fill the necessary details in Declaration and verification section of the form, and click on save.

Step 9: Check the all the details furnished in the form. you can edit the details by clicking on edit button otherwise click on Proceed to e-verify button.

Step 10: Select the Relevant option from below options to verify the form

Step 11: After verification Click on yes to Submit the Form.

Step 12: Now Form is submitted Successfully Note the Transaction id for the future reference.

Now, if taxpayer wants to View filed form Go to the e-file menu > View filed forms > Form 10 IEA You can download the Form and receipt. click on View details to see the life cycle of form

6. Related Topics

Dashboard

How to e-Verify

Income Tax Forms

Form 10 IEA > FAQs

1.From which Assessment Year Form 10-IEA is applicable?

Form 10-IEA has been notified vide Notification No. 43/2023 dated 21^st June 2023- and is applicable from Assessment Year 2024-25 onwards i.e. for A.Y. 2024-25 and upcoming years.

2.Who can file Form 10-IEA on e-filing portal?

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

3.Why do I need to submit Form 10-IEA?

You will be required to submit Form 10-IEA if you want to opt out / re-enter new tax regime and have Income under the Head “Profits and Gains of Business and Profession.”

4.What are the modes in which Form 10-IEA can be submitted?

Form 10-IEA can only be submitted online on the e-Filing portal.

5.How can Form 10-IEA be e-verified?

The taxpayer can E-Verify the form using Aadhaar OTP, EVC or DSC. You can refer to How to E-Verify user manual to learn more. https://www.incometax.gov.in/iec/foportal/help/how-to-e-verify-your-e-filing-return .

6.Can I add an Authorized Representative to file Form 10-IEA on my behalf?

Yes, you can add an Authorized Representative to file Form 10-IEA on your behalf. You can refer to ‘Authorize / Register as Representative User Manual’ to learn more. https://www.incometax.gov.in/iec/foportal/help/how-to-authorize-signatory

7.What is the time limit for filing Form 10-IEA?

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.

8.Can I submit Form 10-IEA after filing of Income Tax Return?

In order to get the benefit of filing of Form 10-IEA, it is advisable to file the form before filing of Income Tax Return. Acknowledgement Number and date of filing of Filed Form 10-IEA are required to be provided in the Income Tax Return.

9.While submitting the form 10-IEA, designation is not getting pre-filled under Verification tab. What should I do?

You are requested to update the “Key Person Details” under “My Profile” section. Re-login to the e-Filing portal and try again.

10.I do not have any business income. While filing Form 10-IEA, I am unable to proceed further if I select “No” for “Do you have income under the head “profits and gains from business or profession” during the assessment year”. What should I do?

In case you don’t have any business, income and are required to file ITR 1/ ITR 2, then there is no need to file Form 10-IEA to opt out/ re-enter the new tax regime under Section 115BAC of the Income Tax Act, 1961. In such case, the option can be exercised while filing the respective ITR form (ITR 1/ ITR 2) on or before the due date specified under section 139(1) of the Income Tax Act, 1961.

11.What should I select for “Due date applicable for filing the return of income”?

You have to select due date applicable for filing the return of income u/s 139(1) of the Income Tax Act, 1961. You can refer to ‘help document’ available on the screen and select applicable option for filing Form 10-IEA

12.Should I need to file Form 10-IEA for every year to ‘opt out’ of new tax regime?

In case you ‘opted out’ of new tax regime in earlier Assessment Year and you want to continue the old tax regime in ITR, you don’t need to file the Form 10-IEA every year.

13.Form 10-IEA is applicable on me and now I want to withdraw the option of old tax regime in my ITR. What is the procedure for the same?

In case you opted old tax regime in earlier Assessment Year and you want to ‘re-enter’ the new tax regime, then you need to file Form 10-IEA for withdrawal of option in the form for the upcoming assessment year.

14.I withdraw the option in form 10-IEA in previous Assessment Year by filing the form with re-entering option. Can I again exercise the option of old tax regime in Form 10-IEA?

In case withdraw the option in form, you will never be eligible to exercise the option of old tax regime again except when you cease to have income from business or profession.

15.I wanted to opt out of new tax regime in Form 10-IEA, but I filed Form 10-IEA after due date of Income tax return. Will I get the benefit of old tax regime?

In case you want to opt out of new tax regime and you fail to file the form within due date. You will not be eligible to get the benefit of old tax regime in your ITR.

16.I have filed Form 10-IEA and the status of the form is Invalid Form. What should I do?

In case you have filed Form 10-IEA after the due date of income tax return, the status of the form will be Invalid Form. In that case, Form can be filed in subsequent Assessment Year afresh.

17.The status of the filed Form 10-IEA has been changed from ‘Valid Form’ to ‘Invalid Form’. What should I do?

In case correct due date has not been selected while filing of Form 10-IEA, which is applicable for filing your Income Tax Return and your filed Form 10-IEA was not accepted for processing of ITR due to filing of said form after the due date of ITR. In such case, the status of form will get changed to "Invalid Form". In such circumstance, Form 10-IEA can be filed afresh in subsequent Assessment Year.

Glossary

Acronym/Abbreviation	Description/Full Form
ITR	Income Tax Returns
DSC	Digital Signature Certificate
EVC	Electronic Verification Certificate
ARN	Acknowledgement Receipt Number
AY	Assessment Year
PY	Previous Year
FY	Financial Year

Metadata

Form 10IEA

Form 10 IE

115Section 115BAC