3 days ago

Form 10-IEA Rules Limit Tax Regime Switching for Businesses

These taxpayers can't switch between old and new regimes every year: Know Form 10-IEA rules, deadline and filing process · livemint.com

People who earn money from a business or profession have special rules for choosing a tax system.

They cannot change between the old and new systems every year.

To leave the new system, they must file Form 10-IEA.

They may use the form later to return to the new system.

After returning, they cannot go back to the old system while they still have business or professional income.

The form is used by eligible individuals, Hindu Undivided Families, and Associations of Persons.

For the 2026-27 assessment year, non-audit taxpayers filing ITR-3 or ITR-4 must file it by 31 August.

The form should preferably be filed before the income-tax return because its acknowledgement details are needed in the return.

Key facts

Default regime: The new tax regime has been the default from assessment year 2024-25.
Form purpose: Form 10-IEA allows eligible taxpayers to opt out of the new regime or re-enter it.
Eligible taxpayers: Individuals, Hindu Undivided Families, and Associations of Persons, excluding co-operative societies, with business or professional income.
Relevant returns: The rules apply to taxpayers filing ITR-3 or ITR-4 with business or professional income.
AY 2026-27 deadline: Non-audit ITR-3 and ITR-4 filers must submit Form 10-IEA by 31 August.
Filing sequence: The form is preferably filed before the ITR because its acknowledgement number and filing date must be reported in the return.
Revision or withdrawal: Once filed, Form 10-IEA cannot be revised or withdrawn during the same assessment year.

livemint.com · 3 days ago