Form 10-IEA: How to Choose or Change Your Tax Regime
- PRITI SIRDESHMUKH
- 2 hours ago
- 10 min read
Form 10-IEA is a key filing document under the Income Tax Act that enables taxpayers to choose or change between the old and new tax regimes. It provides an official mechanism for declaring regime preference, ensuring the choice is valid for the financial year. Introduced to bring transparency and flexibility, this form is especially crucial for individuals and businesses with professional or business income who wish to opt out of the default new regime or re-enter it later. The process, timelines, and implications of filing Form 10-IEA must be clearly understood to avoid errors or missed tax benefits.
Table of Contents
Understanding Form 10-IEA and Its Purpose
Form 10-IEA is a statutory declaration form introduced under Section 115BAC of the Income Tax Act, allowing taxpayers to choose or change between the old and new tax regimes. It serves as an official record of a taxpayer’s preference regarding the applicable tax regime for a particular financial year. This form is especially relevant for individuals and Hindu Undivided Families (HUFs) with business or professional income. It helps the Income Tax Department verify and confirm the taxpayer’s chosen regime during income tax return filing. Without this declaration, taxpayers may be automatically taxed under the default new regime, even if they intend to stay under the old one.
Who Needs to File Form 10-IEA?
Form 10-IEA is mandatory for individuals and HUFs earning income from business or profession who wish to opt out of the default new tax regime or switch back later. For salaried individuals without business income, filing this form is optional; they can choose their preferred regime directly while filing the income tax return. However, business owners or professionals must file Form 10-IEA to ensure that their regime selection is valid for that financial year. Not filing it on time can result in automatic taxation under the new regime, even if the old regime is financially more beneficial.
When and How to Submit Form 10-IEA under Section 139(1)
Form 10-IEA must be filed electronically before the due date of filing the income tax return as prescribed under Section 139(1) of the Income Tax Act. The deadline is usually July 31 for individual taxpayers, unless extended by government notification. Filing after the due date makes the form invalid for that year, and the taxpayer’s choice of regime will not be considered. The form is submitted through the Income Tax Department’s e-filing portal using the taxpayer’s PAN credentials. Once filed, the system generates an acknowledgment confirming successful submission.
Step-by-Step Process to File Form 10-IEA Online
Log in to the official Income Tax e-filing portal using your PAN and password.
Navigate to “e-File” → “Income Tax Forms” → “File Income Tax Forms.”
Search for “Form 10-IEA” in the list of available forms.
Select the relevant assessment year (for example, AY 2025–26 for FY 2024–25).
Fill in required details such as PAN, full name, address, and contact information.
Specify the nature of income (business or profession) and regime preference.
Declare whether this is your first switch or a re-entry into the previous regime.
Review all information carefully and click “Preview & Submit.”
Verify the form using Aadhaar OTP, Digital Signature, or Electronic Verification Code (EVC).
After successful submission, download the acknowledgment for your records.
This process ensures that your regime choice is formally registered with the tax authorities and reflected correctly while filing your return.
Eligibility and Lifetime Limitations for Changing Tax Regime
Taxpayers with business or professional income are permitted to file Form 10-IEA twice in their lifetime—once to opt out of the new regime and once to re-enter it. After this, the selection becomes permanent unless there is a significant change in the law. Salaried taxpayers without business income, however, can switch regimes every year while filing their ITR without using this form. The restriction for business income taxpayers is intended to maintain consistency in reporting and prevent frequent regime changes based on fluctuating deductions or income levels. Therefore, it’s essential to evaluate your tax implications before filing Form 10-IEA.
Comparing Old vs New Tax Regime Before Filing Form 10-IEA
Before choosing a regime through Form 10-IEA, taxpayers should compare the effective tax liability under both regimes. The old regime allows deductions and exemptions such as HRA, LTA, and Section 80C investments, reducing taxable income for those claiming multiple benefits. In contrast, the new regime offers lower slab rates but disallows most deductions and exemptions. For individuals with significant investments or eligible deductions, the old regime might result in lower tax payable. However, for those with fewer deductions or straightforward income structures, the new regime could be more advantageous. Tools like TaxBuddy’s regime comparison calculator help evaluate both scenarios and identify the better option.
Is Standard Deduction Allowed in the New Tax Regime?
Yes, as per Budget 2023 and subsequent refinements in Budget 2025, a standard deduction of ₹75,000 is allowed for salaried individuals and pensioners under the new tax regime. Earlier, this benefit was limited to the old regime. This change makes the new regime more appealing for middle-income earners who do not have many additional deductions. However, it is important to note that while the standard deduction is available, most other exemptions—such as HRA or 80C deductions—are still not permitted under the new regime. Hence, taxpayers should assess total deductions before switching.
How Deductions Work in the Old Tax Regime
Under the old tax regime, taxpayers can claim various deductions and exemptions to reduce taxable income. Common deductions include Section 80C investments (up to ₹1.5 lakh), medical insurance under Section 80D, interest on home loans under Section 24(b), and HRA exemptions. These benefits often lead to significant tax savings for those with eligible expenses or investments. However, maintaining supporting documentation and accurate records is crucial for claiming them. Business owners can also deduct legitimate business expenses, depreciation, and professional charges under this regime. Filing Form 10-IEA helps preserve access to these benefits if you decide to stay in or return to the old regime.
Common Mistakes to Avoid While Filing Form 10-IEA
Many taxpayers make errors that lead to invalid submissions or missed opportunities. Common mistakes include:
Filing the form after the ITR due date, making it inapplicable.
Choosing the wrong financial or assessment year.
Failing to verify the form after submission.
Selecting the incorrect taxpayer type (individual vs HUF).
Forgetting to download acknowledgment for records.
Submitting the form despite being ineligible to switch regimes again.
Careful review and timely submission can help avoid these issues. Using digital tax platforms like TaxBuddy can prevent such errors through guided filing steps and automated validations.
Recent Updates and Notifications from CBDT
The Central Board of Direct Taxes (CBDT) has issued several notifications to simplify compliance with Form 10-IEA filing. These updates clarify timelines, verification methods, and technical procedures. One major update is that regime selection through Form 10-IEA must align with the ITR filing timeline under Section 139(1). Another important clarification allows taxpayers to correct regime errors before final ITR submission, improving flexibility. Additionally, Budget 2025 has refined tax slab structures under the new regime and extended standard deductions, making regime selection more transparent and data-driven.
How TaxBuddy Helps with Form 10-IEA Filing
TaxBuddy simplifies the process of filing Form 10-IEA by offering AI-driven comparisons and expert-assisted guidance. The platform automatically evaluates whether the old or new regime offers better tax benefits based on individual income, deductions, and expenses. Once the optimal regime is selected, users can easily submit Form 10-IEA through guided steps, ensuring accuracy and compliance. TaxBuddy’s professionals also provide support for cases involving business or professional income, where lifetime regime switching rules apply. This makes the filing process faster, more reliable, and error-free.
Conclusion
Filing Form 10-IEA correctly is essential for declaring your preferred tax regime and ensuring compliance with income tax laws. Since the choice affects deductions, exemptions, and overall tax liability, it must be made with careful evaluation. Taxpayers should review both regimes before submission and file within the due date to avoid default taxation under the new regime. For anyone looking for assistance in tax filing, it is recommended to download theTaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy offers both self-filing and expert-assisted plans to suit different types of taxpayers. Under the self-filing plan, individuals can upload their Form 16, TDS certificates, and investment details, after which TaxBuddy’s AI system auto-fills relevant fields and checks for common errors. This option is ideal for those who prefer filing their own returns but want additional validation. The expert-assisted plan, on the other hand, provides complete support from tax professionals who review income details, deductions, and regime choices before filing the return on your behalf. This flexibility ensures that taxpayers with both simple and complex cases are covered.
Q2. Which is the best site to file ITR?
The official Income Tax Department website (www.incometax.gov.in) remains the statutory platform for filing income tax returns. However, many taxpayers prefer private platforms like TaxBuddy due to the added features of automated checks, regime comparison tools, and real-time expert support. TaxBuddy simplifies the filing process with guided steps, personalized dashboards, and AI-powered validation, ensuring an error-free and smooth experience. For those seeking convenience, accuracy, and quick assistance, TaxBuddy is one of the most efficient and secure alternatives available for online ITR filing.
Q3. Where to file an income tax return?
Income tax returns can be filed online through the official Income Tax e-filing portal (www.incometax.gov.in) or via authorized private e-filing platforms such as TaxBuddy. Filing through TaxBuddy offers a more intuitive process with AI-assisted inputs, document uploads, and regime comparison features. It also reduces the risk of errors and ensures that deductions, exemptions, and tax credits are applied correctly. For business owners, professionals, and salaried individuals, filing online provides faster verification, quicker refund processing, and complete digital recordkeeping.
Q4. What is the purpose of Form 10-IEA?
Form 10-IEA is designed to help taxpayers officially declare their preference for the old or new tax regime under Section 115BAC of the Income Tax Act. It is particularly important for those earning business or professional income who wish to opt out of the default new regime or re-enter it after previously switching. By filing Form 10-IEA, the taxpayer informs the Income Tax Department about their regime choice for that financial year, ensuring correct computation of taxes during ITR filing. Without this declaration, the department automatically applies the default regime, which could increase tax liability if deductions are not claimed.
Q5. Who is required to file Form 10-IEA?
Individuals and Hindu Undivided Families (HUFs) with income from business or profession are required to file Form 10-IEA if they wish to choose between the old and new tax regimes. This requirement ensures that their regime preference is officially recorded for the relevant assessment year. Salaried employees without business income are not obligated to file Form 10-IEA; they can select their preferred regime directly when filing their ITR. However, those with business income must use Form 10-IEA for any switch or re-entry into the previous regime to maintain compliance and avoid default taxation.
Q6. Can Form 10-IEA be revised after submission?
No, Form 10-IEA cannot be revised once it has been filed and accepted by the Income Tax Department. Since the form directly affects the taxpayer’s regime selection for that assessment year, revisions are not permitted to maintain consistency and compliance. If a taxpayer makes an error, they can only correct it by filing a fresh ITR under the applicable regime, but not by modifying Form 10-IEA itself. Therefore, it is essential to review all details carefully before submission and verify that the chosen regime aligns with your financial plan and deductions.
Q7. Is Form 10-IEA mandatory for salaried employees without business income?
For salaried taxpayers who do not have business or professional income, filing Form 10-IEA is not mandatory. They can simply select their preferred regime (old or new) while filing their ITR each year. However, if a salaried individual also has business income, then filing Form 10-IEA becomes necessary to make their regime choice valid. Even though the new regime is now the default option, salaried taxpayers who wish to claim deductions under the old regime should review both options carefully before submission.
Q8. How many times can a taxpayer switch between tax regimes?
Taxpayers with business or professional income can switch between the old and new tax regimes only twice in their lifetime—once to opt out of the new regime and once to re-enter it. After these two switches, the selection becomes permanent for all subsequent years. Salaried individuals without business income, however, have the flexibility to switch regimes every year while filing their ITR. These limitations are intended to maintain transparency and avoid frequent regime changes based on temporary deductions or income fluctuations.
Q9. What happens if Form 10-IEA is not filed before the ITR due date?
If Form 10-IEA is not filed before the due date under Section 139(1), the taxpayer’s income will automatically be taxed under the default new regime, regardless of the intended preference. This could result in losing access to deductions and exemptions available under the old regime. Moreover, the Income Tax Department may not accept regime changes made after the filing deadline. Filing the form within the prescribed period ensures that the chosen regime is applied correctly, avoiding future disputes or rectification requirements.
Q10. Are deductions under Section 80C available in the new tax regime?
No, deductions under Section 80C are not available in the new tax regime. The new regime offers simplified lower slab rates but excludes most deductions and exemptions such as 80C, 80D, HRA, and LTA. However, taxpayers can still claim specific deductions like employer NPS contributions under Section 80CCD(2) and the standard deduction under the revised provisions. In contrast, the old regime allows extensive deductions and exemptions, making it more suitable for those with substantial investments in eligible instruments.
Q11. Can Form 10-IEA be filed offline or through a CA?
Form 10-IEA can only be filed online through the official Income Tax Department portal. Offline filing is not permitted for this form. However, taxpayers can take professional help from a chartered accountant or use digital tax platforms like TaxBuddy to complete the process. TaxBuddy’s guided form submission ensures accuracy, compliance with deadlines, and proper verification. Using professional or platform-based assistance helps prevent technical errors and ensures that the declaration is filed correctly in accordance with the prescribed rules.
Q12. Does TaxBuddy assist with regime comparison and filing Form 10-IEA?
Yes, TaxBuddy provides comprehensive assistance for both regime comparison and filing Form 10-IEA. Its AI-based system evaluates the taxpayer’s income, deductions, and exemptions to suggest whether the old or new regime would result in lower tax liability. Once the choice is finalized, TaxBuddy guides users step-by-step through filing Form 10-IEA on the Income Tax Department portal. Additionally, expert support is available for complex cases involving business or professional income, ensuring accurate and timely submission. This approach simplifies compliance and provides taxpayers with a smooth, error-free filing experience.
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