The Income Tax Portal has been updated with the Form 10IEA, enabled for exercising the option to choose the old regime instead of the default new regime.
Form 10-IEA holds significance for professionals and business owners who wish to continue under the old tax regime for the current financial year. This form was introduced by the Central Board of Direct Taxes, aligning with the Budget 2023 announcement that the new tax regime would become the default option from FY 2023-24 onwards. By completing Form 10-IEA, taxpayers retain the choice to stick with the old tax regime if they prefer, but this decision must be made before the deadline for filing income tax returns.
Understanding Form 10-IEA
Form 10-IEA serves as a pivotal tool for taxpayers amidst the transition to the new tax regime. With the default setting shifting to the new regime starting FY 2023-24, taxpayers must actively opt for the old regime by following the prescribed procedures. By submitting Form 10-IEA, taxpayers exercise their right to select between the old and new tax regimes, ensuring transparency in their tax declarations and records.
Purpose and Requirements
The purpose of filing Form 10-IEA is clear – individuals earning income from professions or businesses must submit this form within the deadline specified under Section 139(1). This step is crucial for those seeking to switch from the new tax regime to the old one, as it dictates the applicable rules and regulations for the taxpayer.
Key information such as PAN number, assessment year, name, and current status must be accurately provided in Form 10-IEA, facilitating precise categorization and identification of taxpayer details.
Amendments and Process Streamlining
Until the financial year 2022-23, the new tax regime wasn’t the default option, necessitating individuals to file Form 10-IE to opt for it. However, with the new default setting starting from FY 2023-24, individuals not specifying their choice will automatically fall under the new regime.
This amendment benefits individuals without professional or business income, as they can now directly indicate their preference while filing tax returns.
Submission Deadline and Acknowledgement
Submitting Form 10-IEA online before the income tax return filing deadline (typically July 31st) is mandatory. Timely submission ensures compliance with tax regulations and facilitates seamless processing of tax-related information by authorities. Upon filing, taxpayers receive an acknowledgement number, crucial for tracking the form’s status and referencing it in future communications or during Income Tax Return ( ITR ) filing.
In conclusion, Form 10-IEA plays a crucial role in allowing taxpayers to choose between the old and new tax regimes.
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