Key Takeaways on Form 10-IE and Form 10-IEA
- The new tax regime under Section 115BAC is the default from AY 2024-25 onwards. Doing nothing means you are taxed under it.
- Salaried taxpayers with no business income switch regimes inside the ITR itself, every year, with no form to file.
- Business and professional income taxpayers filing ITR-3 or ITR-4 must file Form 10-IEA on the e-filing portal to opt out of the new regime.
- Form 10-IEA must be filed on or before the Section 139(1) due date. For AY 2026-27 that is 31 July 2026 without audit and 31 October 2026 with audit.
- The form must be filed before the ITR, because its acknowledgement number is a required field in the return.
- With business income you get one opt-out and one withdrawal. After the withdrawal you cannot return to the old regime for as long as you have business income.
- A belated return under Section 139(4) forfeits the old regime even if Form 10-IEA was filed on time.
The new tax regime under Section 115BAC has been the default since Assessment Year 2024-25. Lower slab rates, but most deductions and exemptions are gone. If you file without saying otherwise, that is the regime you get.
For a salaried taxpayer this is a low-stakes decision, reversible every year inside the return. For a business owner, freelancer, consultant or professional filing ITR-3 or ITR-4 it is not. You have to file Form 10-IEA to leave the new regime, you have to file it before the return, and the number of times you can change your mind is capped for life.
This guide covers what the forms are, who files them, the AY 2026-27 deadlines, the portal steps, and the specific ways the claim gets lost.
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Form 10-IE and Form 10-IEA: What Changed
Form 10-IE was the original declaration, introduced when Section 115BAC first became available. Back then the old regime was the default and the new regime was the thing you had to opt into. Individuals and HUFs with business or professional income filed Form 10-IE to enter the new regime. It applied for FY 2020-21 to FY 2022-23 (AY 2021-22 to AY 2023-24).
Form 10-IEA replaced it from AY 2024-25, when the Finance Act 2023 flipped the default. The new regime became automatic, so the form's job inverted: it is now the application to opt out of the new regime, and later to withdraw that opt-out.
The department titles it "Application for exercise/withdrawal of option under clause (i) of sub-section (6) of section 115BAC of the Income-tax Act, 1961."
| Aspect | Form 10-IE | Form 10-IEA |
|---|---|---|
| Period | FY 2020-21 to FY 2022-23 | AY 2024-25 onwards |
| Default regime then | Old | New |
| What the form does | Opts into the new regime | Opts out of the new regime, or withdraws that opt-out |
| Status | Obsolete | Current |
If you are filing for AY 2026-27, Form 10-IE is not relevant to you. Ignore any guidance that still refers to it.
Who Must File Form 10-IEA
Form 10-IEA is required only where both conditions hold: you have income under the head "Profits and Gains of Business or Profession", and you want the old regime.
| Taxpayer | Form 10-IEA required |
|---|---|
| Individual with business or professional income | Yes, to opt out of the new regime |
| HUF with business or professional income | Yes |
| AOP other than a cooperative society | Yes |
| BOI with business or professional income | Yes |
| Artificial juridical person | Yes |
| Presumptive filer under Section 44AD or 44ADA (ITR-4) | Yes, presumptive income is still business income |
| Salaried individual with no business income | No, select the regime inside ITR-1 or ITR-2 |
| Pensioner with no business income | No |
Note the presumptive row. A freelancer declaring income under Section 44ADA in ITR-4 is a business income filer for this purpose. Presumptive taxation does not exempt you from the form.
You also do not need Form 10-IEA to stay in the new regime. The form only exists for leaving it and coming back.
Salaried Versus Business Income: Why the Rules Differ
| Salaried, no business income | Business or professional income | |
|---|---|---|
| How to choose the old regime | Select it in ITR-1 or ITR-2 | File Form 10-IEA, then quote the acknowledgement in ITR-3 or ITR-4 |
| Frequency | Every year, freely | One opt-out and one withdrawal, for life |
| Separate form | None | Form 10-IEA |
| Deadline | The return due date | The return due date, and before the return itself |
The restriction exists because business income carries multi-year consequences: depreciation schedules, additional depreciation, loss carry-forward, and the deductions that Section 115BAC(2) disallows. Free annual switching would let a business time its regime against its own depreciation cycle. The one-way ratchet closes that off.
Salaried example. Rahul earns Rs 9 lakh in salary and wants the old regime for HRA and Section 80C. No form. He ticks the opt-out in ITR-1. Next year he can go back to the new regime with another tick.
Business example. Priya runs a consultancy and files ITR-3. She wants the old regime for 80C, 80D and home loan interest. She must file Form 10-IEA before the due date. If she misses it, the Central Processing Centre computes her tax under the new regime, disallows the deductions, and issues a demand.
Before you commit either way, run the numbers. Our old versus new tax regime comparison for AY 2026-27 and the list of deductions that survive under Section 115BAC set out what you actually give up.
Deadline for AY 2026-27
Section 115BAC(6) requires the option to be exercised on or before the due date specified under Section 139(1) for furnishing the return.
| Category | Due date |
|---|---|
| ITR-3 or ITR-4, no tax audit | 31 July 2026 |
| ITR-3 or ITR-4, Section 44AB tax audit applies | 31 October 2026 |
| Transfer pricing report in Form 3CEB required | 30 November 2026 |
Two things this deadline is not:
- It is not extended by filing a belated return. Section 139(4) gives you more time to file the return, not more time to choose a regime.
- It is not the ITR filing date. Form 10-IEA has to be in before the return, because the return asks for its acknowledgement number and filing date.
What Happens If You Miss It
| Consequence | Effect |
|---|---|
| Option treated as invalid | The portal marks a late Form 10-IEA "Invalid Form" |
| Tax recomputed | CPC processes the return under the new regime |
| Deductions denied | 80C, 80D, 80CCD(1B), HRA, Section 24(b) interest and the rest of Chapter VI-A go |
| Demand notice | Intimation under Section 143(1) with the shortfall, plus interest |
| Remedy | Rectification under Section 154 or appeal, both slow and both uphill |
There is a second trap here. Even a timely Form 10-IEA does not save you if the return is late. Filing under Section 139(4) locks you into the new regime regardless, and the portal will not offer the opt-out in a belated return. If you are already past the date, read what a belated, revised or updated return can and cannot recover before filing.
Some tribunal benches have granted relief where the form was filed within time and only the return slipped, treating the return-timing requirement as directory rather than mandatory. Those orders are fact-specific, they are not binding on your assessing officer, and relying on one as a filing strategy is a bad trade. File both on time.
How to File Form 10-IEA
Step-by-Step Guide
Filing Form 10-IEA on the Income Tax e-Filing Portal
Exercise or withdraw the option to opt out of the new tax regime
Log in to the e-Filing Portal
Go to incometax.gov.in and log in with your PAN and password.
LoginOpen File Income Tax Forms
Navigate to e-File, then Income Tax Forms, then File Income Tax Forms.
NavigateSelect Form 10-IEA
Under 'Persons with Business/Professional Income', pick Form 10-IEA, or type 10IEA in the search box.
Select FormChoose Assessment Year 2026-27
Select AY 2026-27, click Continue, then Let's Get Started.
Assessment YearConfirm Business Income
Answer Yes to the question on income under 'Profits and gains from business or profession'. Answering No blocks the form.
ConfirmSelect Due Date and Option Type
Pick the applicable due date, 31 July 2026 or 31 October 2026. On a first filing the option is auto-set to 'opting out'; if you have opted out before, it is auto-set to 're-entering'.
Select OptionComplete the Declaration
Verify the pre-filled basic information, fill the IFSC unit details if applicable (disabled when opting out), then complete the declaration and verification.
Completee-Verify and Save the Acknowledgement
Review the preview, click Proceed to e-Verify, and verify with Aadhaar OTP, EVC or DSC. Record the acknowledgement number and filing date for the ITR.
e-VerifySource: Income Tax Department e-Filing portal (incometax.gov.in); Form 10-IEA user manual
After Filing
- Record the acknowledgement number and date. Both are mandatory fields in ITR-3 and ITR-4.
- File the return, selecting the old regime, and enter those details where prompted.
- Retain the filed form. It is the evidence if the regime is questioned at processing.
The Form Cannot Be Revised
Once Form 10-IEA is submitted and e-verified, it cannot be revised or cancelled for that assessment year. If you file it and then discover the new regime was better, you are bound to the old regime for that year. Compute both before you submit, not after. Filing ITR-3 or ITR-4 with the wrong regime locked in is not a mistake the portal lets you undo.
Withdrawal and Re-entry: The One-Time Rule
If you opted out earlier and now want back into the new regime, you file Form 10-IEA again, this time as a withdrawal. The portal auto-selects "re-entering" once it sees a prior opt-out on your PAN.
Section 115BAC(6)(i) sets the limits. The option once exercised can be withdrawn only once, and only for a previous year other than the year in which it was exercised. After that withdrawal the person is never again eligible to exercise the option, so long as they continue to have business or professional income.
| Action | Allowed | Limit |
|---|---|---|
| Opt out of the new regime | Yes | Once |
| Continue in the old regime in later years | Yes | No fresh form needed each year |
| Withdraw the opt-out and re-enter the new regime | Yes | Once, and not in the same year the option was exercised |
| Opt out a second time | No | Barred while business income continues |
The one exception. If in a later year you cease to have business or professional income entirely and file ITR-1 or ITR-2, the salaried rules apply to you for that year and you can choose freely. The lock bites only in years with business income.
Worked example. A doctor taxed under Section 44ADA opted out for AY 2025-26 while her home loan interest was large. The loan closes, so for AY 2026-27 she files a second Form 10-IEA to withdraw and re-enter the new regime. That was her one withdrawal. For as long as she has professional income, the old regime is closed to her.
Do You Refile Every Year?
No. A single Form 10-IEA carries the old regime forward year after year. You file again only to withdraw. Filing a fresh opt-out form for a year in which you are already out of the new regime is not required and creates confusion in the return's pre-fill.
Common Mistakes
| Mistake | Why it fails | Fix |
|---|---|---|
| Selecting the old regime in ITR-3 without filing the form | For business income the ITR tick is not the option. Section 115BAC(6) requires the form | File Form 10-IEA first, quote the acknowledgement in the return |
| Filing Form 10-IEA after the ITR | The return needs the acknowledgement number as an input | Form first, return second |
| Assuming a 31 August due date | For AY 2026-27 the non-audit due date is 31 July 2026 | Diarise 31 July, or 31 October if audited |
| Treating a belated return as harmless | Section 139(4) forfeits the old regime even with a timely form | Get the return in by the Section 139(1) date |
| Expecting to switch annually | Business income gets one opt-out and one withdrawal for life | Model several years before the first filing |
| Using Form 10-IE | Obsolete since AY 2024-25 | Use Form 10-IEA |
| Ignoring the form because income is presumptive | 44AD and 44ADA income is business income | ITR-4 filers file the form too |
Form 10-IEA at a Glance
| Parameter | Detail |
|---|---|
| Purpose | Opt out of the default new regime, or withdraw that opt-out |
| Provision | Section 115BAC(6)(i) |
| Who files | Individual, HUF, AOP other than a cooperative society, BOI, AJP, with business or professional income |
| Who does not | Salaried and pensioners with no business income |
| Replaces | Form 10-IE |
| Deadline, AY 2026-27 | 31 July 2026 without audit, 31 October 2026 with audit, 30 November 2026 with Form 3CEB |
| Sequence | Before the ITR |
| Mode | Online at incometax.gov.in, e-verified by Aadhaar OTP, EVC or DSC |
| Revisable | No |
| Lifetime limit | One opt-out plus one withdrawal, while business income continues |
| If late | Option invalid, taxed under the new regime, deductions denied |
Under the Income Tax Act 2025
The Income Tax Act 2025 takes effect from 1 April 2026 for Tax Year 2026-27. Section 115BAC of the 1961 Act corresponds to Section 202 of the 2025 Act. Returns filed in 2026 for FY 2025-26 remain governed by the 1961 Act, so Section 115BAC and Form 10-IEA are the operative provisions for AY 2026-27. The default regime, the form-based opt-out and the one-time withdrawal restriction carry over substantially unchanged.
Where Tax Garden Helps
The regime choice and the form that implements it are the same decision, and a business income filer only gets to make it a limited number of times. Getting the sequence wrong costs a year of deductions and a demand notice.
Tax Garden's CAs help you:
- Compute your liability under both regimes before anything is filed
- Confirm whether Form 10-IEA is required at all for your income profile
- File Form 10-IEA ahead of the Section 139(1) due date and e-verify it
- Carry the acknowledgement into ITR-3 or ITR-4 correctly
- Model the one-time withdrawal before you spend it
- Respond to a Section 143(1) intimation where the regime was recomputed
Looking for expert help with Form 10IE, Form 10IEA, new tax regime option business income, Section 115BAC, how to file Form 10IEA, tax regime switch business income? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant. End-to-end filings, notices, and deadline tracking, all in one place.
Form 10-IE and Form 10-IEA: Frequently Asked Questions
What is Form 10-IEA?
Form 10-IEA is the application prescribed under Section 115BAC(6)(i) for taxpayers with business or professional income to opt out of the default new tax regime, and later to withdraw that opt-out. It replaced Form 10-IE from AY 2024-25.
Who needs to file Form 10-IEA?
Individuals, HUFs, AOPs other than cooperative societies, BOIs and artificial juridical persons who have income from business or profession and want the old regime. Salaried taxpayers and pensioners without business income do not file it.
What is the deadline for Form 10-IEA for AY 2026-27?
On or before the Section 139(1) due date. For AY 2026-27 that is 31 July 2026 where no tax audit applies, 31 October 2026 where Section 44AB audit applies, and 30 November 2026 where a Form 3CEB report is required.
Do presumptive taxpayers under Section 44AD or 44ADA need Form 10-IEA?
Yes. Presumptive income is still income under the head profits and gains of business or profession, so ITR-4 filers who want the old regime must file the form.
Can salaried taxpayers file Form 10-IEA?
No. Without business or professional income there is no form to file. The regime is selected inside ITR-1 or ITR-2 and can be changed every year.
How many times can I switch regimes with business income?
Once out and once back. The option to opt out can be exercised once and withdrawn only once, and the withdrawal must be for a previous year other than the one in which the option was exercised. After that you cannot opt for the old regime again while you have business income.
What happens if I file Form 10-IEA late?
The portal marks it an invalid form. Your tax is computed under the new regime, all old regime deductions are denied, and you receive an intimation under Section 143(1) raising a demand.
Does a timely Form 10-IEA protect me if my ITR is belated?
No. A return filed under Section 139(4) after the due date is processed under the new regime regardless of the form. Some tribunal orders have granted relief on these facts, but they are not binding and should not be relied on as a plan.
Should Form 10-IEA be filed before or after the ITR?
Before. The acknowledgement number and filing date of Form 10-IEA are mandatory fields in ITR-3 and ITR-4, so the form has to exist before the return is submitted.
Can Form 10-IEA be revised or cancelled?
No. Once submitted and e-verified it cannot be revised or withdrawn for that assessment year. Compare both regimes before submitting, because the choice is fixed for the year.
Do I have to file Form 10-IEA every year to stay in the old regime?
No. One filing carries the old regime forward. You file the form a second time only when you want to withdraw the opt-out and return to the new regime.
What is the difference between Form 10-IE and Form 10-IEA?
Form 10-IE applied from FY 2020-21 to FY 2022-23, when the old regime was the default and the form was used to opt into the new regime. Form 10-IEA applies from AY 2024-25, when the new regime became the default, and is used to opt out of it. Form 10-IE is obsolete.
Sources: Income Tax Act 1961 Sections 115BAC, 139, 143(1), 154, 44AB, 44AD, 44ADA; Finance Act 2023 (new regime as default from AY 2024-25); Income Tax Act 2025 Section 202; Income Tax Department e-Filing portal and Form 10-IEA user manual (incometax.gov.in); incometaxindia.gov.in. Verify current due dates and portal procedure on incometaxindia.gov.in before acting, as deadlines are periodically extended. This article is general information on Form 10-IE and Form 10-IEA and not a substitute for professional advice.
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