Form 10-IEA Explained: Opting Out of the New Tax Regime With Business Income, Deadline and the One-Time Switch (AY 2026-27)
Form 10-IEA is the declaration under section 115BAC(6) and Rule 21AG that a taxpayer with income from business or profession files to opt out of the default new tax regime and be taxed under the old regime. It must be filed on the e-filing portal before the ITR due date, 31 July 2026 or 31 October 2026 for audit cases, and its acknowledgement number goes into ITR-3 or ITR-4. Salaried taxpayers without business income do not file it; they choose the regime inside the ITR each year.
Key facts, FY 2025-26
- Legal basis
- Section 115BAC(6), Rule 21AG; replaced Form 10-IE from AY 2024-25
- Who files
- Individuals, HUFs, AOPs, BOIs and artificial juridical persons with business or professional income who want the old regime
- Deadline
- On or before the due date under section 139(1): 31 July 2026, or 31 October 2026 if audited
- Salaried without business income
- Not required; tick the regime in ITR-1 or ITR-2 every year
- Switch rule
- After opting out, you can return to the new regime only once; after that you cannot opt out again while you have business income
- Where
- e-filing portal, e-File, Income Tax Forms, File Income Tax Forms, Form 10-IEA; verify with Aadhaar OTP, EVC or DSC
What it is
Since AY 2024-25 the new tax regime under section 115BAC is the default for everyone. Salaried taxpayers can move between regimes freely each year in the return itself. Taxpayers with business or professional income cannot: the law treats their choice as a longer commitment, and it must be made through a separate declaration, Form 10-IEA, filed before the return is due.
The form is short. It asks for your PAN, the assessment year, whether you have income from business or profession, the date of birth or incorporation, and whether you are opting out of the new regime or withdrawing an earlier opt-out. It also asks whether you have an IFSC unit, which is relevant only to a handful of filers. Once submitted and verified, an acknowledgement number is generated, and that number must be quoted in ITR-3 or ITR-4.
Form 10-IE, the earlier form used from AY 2021-22 to AY 2023-24 to opt into the new regime when the old one was the default, is no longer in use. If you filed 10-IE in those years, it has no bearing now; the default has flipped and 10-IEA is the only live form.
Who needs Form 10-IEA and who does not
| Taxpayer | Wants old regime | Wants new regime | Form 10-IEA |
|---|---|---|---|
| Salaried, ITR-1 or ITR-2, no business income | Choose in the ITR | Default, nothing to do | Not required |
| Freelancer under 44ADA, ITR-4 | File 10-IEA before 31 July 2026, quote number in ITR | Default, nothing to do | Required for old regime |
| Proprietor with books, ITR-3, no audit | File 10-IEA before 31 July 2026 | Default | Required for old regime |
| Proprietor under 44AB audit, ITR-3 | File 10-IEA before 31 October 2026 | Default | Required for old regime |
| F&O trader with salary, ITR-3 | File 10-IEA; trading is business income | Default | Required for old regime |
| Partner of a firm, ITR-3 | File 10-IEA; remuneration is business income | Default | Required for old regime |
| Business filer who opted out earlier and now wants new regime back | n/a | File 10-IEA choosing withdrawal | Required, and this is the one-time switch |
How to file Form 10-IEA
- Run both regimes on your projected income for FY 2025-26 first. The old regime usually wins only when deductions and exemptions are large relative to income.
- Log in to the e-filing portal, go to e-File, then Income Tax Forms, then File Income Tax Forms. Search for 10-IEA and click File Now.
- Select AY 2026-27. Confirm that you have income from business or profession, and choose whether you are opting out of the new regime or withdrawing an earlier opt-out.
- Fill the basic details, preview, and verify with Aadhaar OTP, EVC through the bank or a digital signature.
- Save the acknowledgement number and date. Enter them in the regime section of ITR-3 or ITR-4 and file the return under the old regime.
- Do this before 31 July 2026 (or 31 October 2026 if audited). A form filed after the due date is not valid and the return is processed under the new regime.
Worked example: Consultant with large deductions: is opting out worth it for FY 2025-26?
- Net professional income
- ₹30,00,000
- Old regime deductions: 80C ₹1.5 lakh, 80D ₹75,000, 80CCD(1B) ₹50,000, 24(b) ₹2 lakh, 80E ₹2 lakh, 80G ₹1 lakh
- ₹8,25,000
- Old regime tax on ₹21,75,000 including 4% cess
- ₹4,83,600
- New regime tax on ₹30,00,000 including 4% cess
- ₹4,99,200
- Saving from filing Form 10-IEA and opting out
- ₹15,600
- With deductions of ₹6 lakh instead, the new regime would be cheaper
- Do not file
Common mistake: filing ITR-3 under the old regime without the form
The ITR asks for the 10-IEA acknowledgement number when you choose the old regime with business income. If it is missing, or the form was filed after the due date, CPC processes the return under the new regime and disallows 80C, 80D, HRA and home loan interest, raising a demand in the 143(1) intimation. There is no cure through a revised return because the form itself was late. File 10-IEA first, then the ITR.
What to do next
If the calculator shows the old regime ahead by a meaningful margin, file 10-IEA now and keep the acknowledgement with your filing papers. Remember that the choice locks: you get one return trip to the new regime, and after that the old regime is closed to you as long as you have business income. If the margin is small, stay on the default; the new regime slabs for FY 2025-26, with nil tax up to ₹12 lakh after rebate, are hard to beat without large deductions.
Form 10-IEA: questions
What is Form 10-IEA?
Form 10-IEA is the declaration a taxpayer with business or professional income files under section 115BAC(6) to opt out of the default new tax regime and be taxed under the old regime with its deductions and exemptions. It is filed online before the ITR due date and its acknowledgement number is quoted in ITR-3 or ITR-4.
What is the due date for Form 10-IEA for AY 2026-27?
The same as the ITR due date under section 139(1): 31 July 2026 for non-audit cases and 31 October 2026 where a section 44AB audit applies. A form filed after that date is not valid, and the return is processed under the new regime.
Do salaried employees need to file Form 10-IEA?
No. Taxpayers without business or professional income choose the regime directly in ITR-1 or ITR-2, and can change it every year. Form 10-IEA is only for those filing ITR-3 or ITR-4 with business income, including F&O traders and partners of firms.
Can I switch back to the new regime after filing Form 10-IEA?
Yes, once. File Form 10-IEA again choosing the withdrawal option, before the due date of the year you want to return. After that withdrawal you cannot opt out of the new regime again in any later year while you have business or professional income.
What happens if I file ITR under the old regime without Form 10-IEA?
CPC treats the return as filed under the new regime, denies chapter VI-A deductions, HRA and home loan interest, and issues a 143(1) intimation with a demand. Because the form deadline has passed, a revised return cannot fix it.
Is Form 10-IEA different from Form 10-IE?
Yes. Form 10-IE was used from AY 2021-22 to AY 2023-24 to opt into the new regime when the old regime was the default. From AY 2024-25 the new regime became the default and Form 10-IEA replaced it, now used to opt out of the new regime or withdraw that opt-out.
Does Form 10-IEA have to be filed every year?
No. Once filed, the old regime continues for later years as long as you have business income, without a fresh form. You file it again only to withdraw and return to the new regime, which is allowed once.
Related forms and sections
- ITR-3ITR-3 is the return for individuals and HUFs who have income from a business or profession, including F&O and intraday trading, freelancing with books of account, proprietorships and partners receiving remuneration or interest from a firm. It contains every schedule in ITR-2 plus a profit and loss account, balance sheet and the tax audit fields. For AY 2026-27 it is due on 31 July 2026, or 31 October 2026 where a section 44AB audit applies.
- ITR-4 (Sugam)ITR-4, called Sugam, is the presumptive taxation return for resident individuals, HUFs and partnership firms (not LLPs) with total income up to ₹50 lakh who declare business profit at 8% or 6% of turnover under section 44AD, professional income at 50% of receipts under 44ADA, or goods-carriage income under 44AE. It also takes salary, one house property, other sources and small 112A gains. No balance sheet or profit and loss account is required, and the due date for AY 2026-27 is 31 July 2026.
- Section 80CSection 80C allows a deduction of up to ₹1,50,000 a year from your gross total income for investments and payments such as PPF, EPF, ELSS, life insurance premium, NSC, 5-year tax-saver FD, Sukanya Samriddhi, tuition fees and home loan principal. It is available only under the old tax regime. At the 30% slab the full limit saves ₹46,800 including cess.
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General information for FY 2025-26, not professional advice. Limits and dates change with each Budget; the updated date above is when this page was last checked. Disclaimer