Understanding Form 10 IEA
Earlier, till FY 2022-23 when the new tax regime was not the default tax regime, individuals had to file Form 10-IEA to specify their willingness to choose the new tax regime. However, starting FY 2023-24, the new tax regime has been set as the default tax regime. This means that if the taxpayer does not specify their intent to choose the old regime, they will be automatically enrolled in the new regime.
Why 10IEA is Needed for Filing ITR FY 2023-24 & onward?
¡From the financial year 2023-24 (AY 2024-25) , The default tax regime for filing ITR is New tax regime and those who wish to opt for OLD Tax regime , the new form 10 IEA can be used to indicate the preference for the old tax regime by Individuals, HUF, AOP (other than co-operative societies), BOI & Artificial Judicial Persons (AJP). They have to mandatorily submit Form 10-IEA within the specified time frame under section 139(1) if they want to switch their tax regime from new to old or if they want to re-enter in the new scheme..
Income Tax Slabs Under Old Tax Regime
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Income Range
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Tax rate
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Tax to be paid
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Up to Rs.2,50,000
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0
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No tax
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Rs 2.5 lakhs - Rs 5 lakhs
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5%
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5% of your taxable income
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Rs 5 lakhs - Rs 10 lakhs
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20%
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Rs 12,500+20% on income above Rs 5 lakh
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Above 10 lakhs
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30%
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Rs 1,12,500+30% on income above Rs 10 lakh
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Income Tax Slabs Under New Tax Regime
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Up to Rs.2.5 lakh
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Nil
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Rs 2.5 lakh to Rs 5 lakh
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5%
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Rs 5 lakh to Rs 7.5 lakh
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10%
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Rs 7.5 lakh to Rs 10 lakh
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15%
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Rs 10 lakh to Rs 12.5 lakh
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20%
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Rs 12.5 lakh to Rs 15 lakh
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25%
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Income above Rs 15 lakh
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30%
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Condition & Eligibility to OPT in OLD Tax Regime:
¡The default new tax regime indicates that individuals, HUF without any professional or business income can opt out of the new tax regime directly at the time of filing tax returns.
The new form 10 IEA can be used to indicate the preference for the old tax regime by Individuals, HUF, AOP (other than co-operative societies), BOI & Artificial Judicial Persons (AJP) having income from business and profession. They have to mandatorily submit Form 10-IEA within the specified time frame under section 139(1) if they want to switch their tax regime from new to old or if they want to re-enter in the new scheme.