Archive · 30 Aug 2026
Form 10-IEA Rules Limit Tax Regime Switching for Businesses
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.
Taxpayers with business or professional income cannot switch between tax regimes every year.
Form 10-IEA is required to move from the new regime to the old regime.
Taxpayers may use the form once more to return to the new regime.
After returning to the new regime, they cannot choose the old regime while retaining business or professional income.
For non-audit ITR-3 or ITR-4 filers, the AY 2026-27 deadline is 31 August.
- Who
- Individuals, Hindu Undivided Families, and Associations of Persons with business or professional income, excluding co-operative societies.
- What
- Form 10-IEA governs opting out of the new tax regime or re-entering it.
- When
- For AY 2026-27 non-audit ITR-3 and ITR-4 filers, the deadline is 31 August.
- Where
- Online through the income tax e-filing portal.
- Why
- The form is required to formally record a taxpayer’s choice to leave or re-enter the new tax regime.
- 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- Once filed, Form 10-IEA cannot be revised or withdrawn during the same assessment year.