Form 10-IEA For Opting Old Tax Regime For F.Y 2023-24
Form 10-IEA for Opting Old Tax Regime for FY 2023-24
CBDT notified New Form 10IEA for Opting & Withdrawing from New Tax system for FY 23–24 and issued Notification No. 43/2023-Income Tax on June 21, 2023. With this announcement, the Income-tax Rules, 1962 will be amended with new rules.?
Previously, Taxpayers were required to fill out Form 10-IE to select the new tax regime. This form allowed them to indicate their preference for the new tax system. However, refer to Budget 2023 from the financial year 2023-24, the new tax regime will automatically be set as the default option for taxpayers. This means that unless individuals take specific action to choose the old tax regime, they will be automatically enrolled in the new system.
The default nature of the new tax regime means Form 10-IE, previously utilized for opting into the new tax regime, has been phased out. It was in use until the financial year 2022-23. Going forward, the new tax regime will be automatically applicable unless specific action is taken to choose the old regime.
Business owners and professionals have a one-time opportunity to transition to the new tax regime. However, post-switching, it is not possible to revert to the old regime. This emphasises the importance of carefully considering the decision to switch tax regimes, which will have long-term implications.
New Form 10-IEA
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Taxpayers required to File Form 10-IEA
Taxpayers who do not have any income from business or profession can choose the old tax regime by simply clicking the old regime checkbox at the time of filing ITR. However, for those who have income from business/profession, it is mandatory to fill Form 10-IEA to opt for the old regime before the ITR filing due date, i.e. 31st July.
Time Limit to submit form 10-IEA
Form 10-IEA should be filed before filing your income tax return. An acknowledgment number will be generated and provided to you after filing Form 10-IEA. Any individual having business income and willing to opt for the old regime can file this form by the due date means if you want to opt for Old Tax Regime but forget to file this form before 31st July then you have to filed your return under New Tax Regime.
Information required in Form 10-IEA?
Form 10-IEA, introduced by the CBDT for selecting the old tax regime, mandates taxpayers to furnish the following vital information: