Form 10-IEA
An overview of Form 10-IEA of the Income Tax Act.
What is Form 10-IEA?
In Budget 2023, the new tax regime was declared the default tax regime. Simply put, anyone who wants to keep the previous tax regime must go through the necessary steps. Form 10IEA permits taxpayers to choose between the old and new regimes.
By filling out this form, taxpayers may speak with the income tax department about their preferred tax regime.
Purpose of Filing Form 10-IEA
- Individuals with business or professional income who want to switch from the new tax regime to the old one must submit Form 10-IEA within the time frame stated in section 139(1).
- Form 10-IEA requires individuals to provide their PAN number, assessment year, name, and current status. This information is used to identify and categorise taxpayer information correctly.
- The most important part of Form 10-IEA is the individual’s option to opt out of or re-enter the default new tax regime. This option determines the rules and regulations that apply.
- Individuals must also provide the appropriate dates for opting out or re-entering the new tax regime when filing Form 10-IEA.
- Collecting this information and identifying relevant dates and choices helps the government maintain transparency and accuracy in tax records.
Amendments Made in Form-10 IEA
People must file Form-10 IEA to opt for the new tax regime until 2022-23. From 2023-24, the new tax regime will be the default. If taxpayers do not state their choice, they are automatically enrolled in the new regime.
Individuals without business or professional income can now opt out of the new regime when filing their tax returns. They can use a new form to select the previous tax regime.
This change makes the process easier for those without a business or professional income who prefer the old regime. They no longer need to file Form 10-IE and can state their preferences immediately on their tax return.
Choosing the Old Tax Regime
Taxpayers without business or professional income can select the old tax system by ticking the old regime box on their ITR. To choose the former regime, persons with business or professional income must complete Form 10-IEA before the ITR filing date of July 31st.
When to Submit Form 10-IEA?
Form 10-IEA needs to be filed right before filing your income tax return. When you file Form 10-IEA, you will be given an acknowledgement number. You must file this form by the due date if you have business income and want to use the old tax regime.
Verification of the Form 10-IEA
The Form 10-IEA should be properly verified and validated. This can be accomplished using a digital signature or an electronic verification code. This verification method helps to ensure that the information given is legitimate and correct, so it avoids fraudulent activities.
Reasons for Discontinuation of Form 10-IEA
Form 10-IE, which was previously used to opt for the new tax system, has been discontinued since the new tax regime became the default tax regime. Form 10-IE was relevant until the financial year 2022-23. However, this discontinuation also agreed with the recently introduced Form 10-IEA, which can be used to choose the previous tax regime.
Details to Fill in 10-IEA
Before you fill out Form 10-IEA online, here’s what you should know:
- Personal Details: Enter the full name that appears on your PAN card and other official documents.
- Tax Regime: Specify if you are choosing the previous tax regime and the applicable assessment year. For FY 2023-24, the assessment year is AY 2024-25.
- Tax Regime Changes: Notify if you are leaving or returning to the default tax system, because this will have an impact on your rates, exemptions, and tax deductions.
- Important Dates: Provide the dates on which you are going to changing your tax regime.
Business Income: Confirm if you have income under “Profits and Gains of Business and Profession.” - IFSC Unit: State if you have a unit in an International Financial Service Centre (IFSC) under Section 80LA. If yes, provide the details.
- Additional Information:Include your address, date of birth, kind of business/profession (if applicable), details from any previous Form 10-IE, and a declaration.
Steps to file Form 10 IEA
You can make the process of filing Form 10 IEA simpler for yourself by following the steps listed below:
1: Log in to your e-filing Portal.
2: On the dashboard, click ‘e-File’, then’ Income Tax Forms’ and ‘File Income Tax Forms’.
3: Select “Form 10 IEA” and click the ‘File Now’ button.
4: Select the ‘Assessment Year. ‘ For example, select 2024- 25 if you are filing for 2023-24 returns.
5: Properly check which documents must be submitted, then click on ‘Let’s get started.’
6: Choose an option that applies to you, i.e., “Yes or No”, to whether you earn income from the profits and gains of your business or profession.
7: Select the due date for filing the return of income, then click continue.
8: Click on Yes to confirm your selection of the regime.
9: Verify and confirm your personal information. If you file the Form for the first time, the opting option will be selected automatically. However, if you have opted out previously, the re-enter option will be automatically selected. After which, you can ‘Save.’
10: Fill in the information regarding your IFSC, if any, then click ‘Save’.
11: You will then need to verify and self-declare by checking the right boxes applicable to you and agreeing to the terms and conditions. Once complete, you can review the information and click Save’.
12: Preview the Form and click ‘Proceed’ to complete the e-verification process. You can verify via your Aadhaar OTP, Digital Signature (D.S.), or Electronic Verification Code (EVC).
13: After verification is done, click Yes’ to submit the Form.
14: After a successful verification, a transaction ID and an Acknowledgement number will be displayed. Keep the number carefully as you can use it for future reference.
That brings us to the end of this post on Form 10-IEA. If you have any questions or queries, please leave a comment in the section below.
FAQs
1. Which Assessment Year is Form 10-IEA applicable?
Ans: Form 10-IEA has been notified via Notification No. 43/2023, dated June 21, 2023, is effective from Assessment Year 2024-25, i.e. for A.Y. 2024-25 and following years.
2. Who is eligible to file Form 10-IEA through the e-filing portal?
Ans: Individuals, Hindu Undivided Families (HUF), Associations of Persons (other than cooperative societies), Bodies of Individuals (BOI), and Artificial Jurisdictional Persons (AJP) can all file the Form.
3. Why should I file Form 10-IEA?
Ans: If you want to opt out of or re-enter the new tax regime and have income under the heading “Profits and Gains of Business and Profession,” you must file Form 10-IEA.
4. What are the several ways Form 10-IEA can be submitted?
Ans: Form 10-IEA can only be submitted online using the e-filing Portal.
