With the recent amendment setting the new tax regime as the default, it is essential to choose the scheme that benefits you most when filing your Income Tax Return (ITR). Individuals and Hindu Undivided Families (HUFs) who wish to continue using the old tax regime for the financial year 2023-24 or assessment year 2024-25 must file Form 10-IEA. This form, introduced by the Central Board of Direct Taxes (CBDT), allows taxpayers to opt for the old tax regime despite the new regime being the default.
What is Form 10-IEA?
Form 10-IEA is a declaration form for taxpayers who prefer the old tax regime. Submitting this form helps maintain accurate tax records and ensures transparency in selecting the tax regime.
Is It Mandatory?
The law on whether submitting Form 10-IEA is mandatory is not yet clear. However, it is advisable to submit it to ensure compliance and avoid any potential issues.
Purpose of Form 10-IEA
For those earning income from their profession or business, Form 10-IEA must be submitted before the deadline for filing the income tax return, usually 31st July 2024. This form allows you to switch from the new tax regime to the old one, requiring details such as your PAN number, assessment year, name, and current status.
Assessment Year
The assessment year is the year following the financial year when the income earned is assessed and taxed. Both the financial year and assessment year start on 1st April and end on 31st March. For example, the assessment year for the financial year 2023-24 is 2024-25.
Changes in Form 10-IEA
Before the financial year 2023-24, taxpayers used Form 10-IE to choose the new tax regime over the old one. Now, with the new tax regime as the default, Form 10-IEA is used to opt for the old tax regime. This amendment simplifies the process for individuals without professional or business income.
When to Submit Form 10-IEA?
Form 10-IEA must be submitted online before the income tax return filing deadline, 31st July 2024. Timely submission ensures compliance with the Income Tax Act and smooth processing of the return. After submission, you will receive an acknowledgment number, which is important for tracking the form’s status and for future reference.
How to Verify Form 10-IEA?
Verification can be done using an electronic verification code received on an Aadhaar-linked mobile number or through a digital signature certificate. This step ensures the accuracy of the provided information and prevents fraudulent activities.
How to Find and Fill Form 10-IEA?
- Access the Portal: Go to the income tax e-filing portal and log in using your credentials.
- Locate the Form: On the dashboard, click ‘e-File’ > ‘Income Tax Forms’ > ‘File Income Tax Forms’. Scroll down to find Form 10-IEA or use the search box.
- Choose the Assessment Year: Select the assessment year for which you are filing the return (e.g., AY 2024-25 for income earned in FY 2023-24). Review the required documents and click Let’s Get Started.
- Fill the Form:
- Basic Information: This section will be pre-filled with your basic information.
- Additional Information: Fill in details related to the IFSC unit (if applicable).
- Declaration and Verification: Check the self-declaration boxes, agree to the terms, and verify that all details are correct. Click ‘Preview’ to review the form.
How to Verify and Submit?
You may e-verify through Aadhaar OTP, Digital Signature Certificate, or Electronic Verification Code. After verification, click ‘Yes’ to submit the form. A success message will display with a Transaction ID and an Acknowledgment Receipt Number, which you can download for future reference.
Key Points to Remember
- Ensure that Form 10-IEA is submitted before or during the filing of the ITR to opt for the old tax regime.
- Provide accurate dates and information to avoid issues later.
- Note that only individuals not earning income through business are allowed to change regimes every year, so exercise caution.
Case Law Example
Is Late Filing of Form 10-IEA Ground for Denial of New Tax Regime Benefits?
On June 10, 2024, the Pune Income Tax Appellate Tribunal (ITAT) ruled in favor of Mr. Akshay Devendra Birari, who had filed his income tax return under the new tax regime but submitted Form 10IE after the due date. The ITAT noted that the delay should not disqualify him from receiving the benefits of the new tax regime. The Tribunal ruled that filing Form 10IE is not a strict legal requirement but rather a guideline. Therefore, the Centralized Processing Center should have considered the form and granted the benefits.
This ruling highlights the importance of flexibility in enforcing tax policies and ensures that procedural delays do not deny taxpayers their rightful benefits.
Conclusion
Form 10-IEA is crucial for taxpayers who have Income from business & profession and want to remain in the old tax regime despite the new one being the default. Proper submission of the form ensures accurate taxation and compliance with regulations. The step-by-step guide provided here aims to facilitate the online filing of Form 10-IEA and underscore the importance of submitting it on time. The ITAT ruling in favor of Mr. Akshay Devendra Birari also emphasizes a taxpayer-friendly approach, ensuring that procedural delays do not prevent taxpayers from receiving their due benefits.
