Form 10-IEA: Your Step-by-Step Guide for FY 2024-25 (AY 2025-26)
Alright, fellow taxpayers, it’s that time of year again! As we approach the income tax return (ITR) filing season, a little form called 10-IEA might be popping up on your radar, especially if you’re navigating the old vs. new tax regime dilemma. For Financial Year 2024-25 (which corresponds to Assessment Year 2025-26), understanding Form 10-IEA is crucial, especially for a specific group of taxpayers.
What’s the Big Deal with Form 10-IEA?
You might recall that from Financial Year 2023-24 onwards, the new tax regime became the default option. This regime offers lower tax slabs but comes with a trade-off: you give up many popular deductions and exemptions (like those under Section 80C, HRA, home loan interest, etc.).
If you have income from a business or profession and you want to stick with the old tax regime – which allows you to claim all those juicy deductions and potentially save more tax – then Form 10-IEA is your golden ticket. It’s essentially a declaration to the Income Tax Department that you are opting out of the default new regime and choosing the old one.
Who needs to file it?
- Individuals and Hindu Undivided Families (HUFs)
- Association of Persons (AOPs) (excluding co-operative societies)
- Bodies of Individuals (BOIs)
- Artificial Juridical Persons (AJPs)
The key is that you must have income under the head “Profits and Gains of Business or Profession” and be filing ITR-3 or ITR-4.
If you don’t have business or professional income (e.g., only salary, house property, or other sources), you usually don’t need to file Form 10-IEA. You can simply indicate your preference for the old tax regime directly in your ITR form (like ITR-1 or ITR-2).
When to File Form 10-IEA for FY 2024-25 (AY 2025-26)?
This is critical! Form 10-IEA must be filed on or before the due date for filing your Income Tax Return as specified under Section 139(1) of the Income Tax Act.
For most individuals and HUFs not subject to audit, the due date for FY 2024-25 (AY 2025-26) is September 15, 2025. For businesses subject to audit, it’s usually October 31, 2025. It’s always a good idea to file Form 10-IEA before you file your actual ITR, as you’ll need the acknowledgement number of Form 10-IEA to quote in your ITR.
Your Step-by-Step Guide to Filing Form 10-IEA Online:
The entire process is done electronically on the Income Tax Department’s e-filing portal.
Step 1: Log in to the e-Filing Portal
- Head over to the official Income Tax e-filing portal (incometax.gov.in).
- Log in using your PAN as your user ID and your password. If you’re a new user, you’ll need to register first.
Step 2: Navigate to the Income Tax Forms Section
- Once you’re on your dashboard, look for the “e-File” menu.
- Click on “Income Tax Forms” and then “File Income Tax Forms.”
Step 3: Find and Select Form 10-IEA
- You’ll see a list of various forms. Scroll down to find “Form 10-IEA” or simply type “10-IEA” in the search box.
- Click on the “File Now” button next to Form 10-IEA to begin.
Step 4: Choose the Correct Assessment Year
- The system will ask you to select the “Assessment Year.” For income earned in Financial Year 2024-25, you need to select Assessment Year 2025-26.
Step 5: Confirm Income Details
- The system will ask if you have income under the head “Profits and Gains of Business or Profession” for the selected assessment year. Select “Yes.”
- You’ll also need to select the applicable due date for filing your return of income. If you’re unsure, there’s usually a “Help Document” hyperlink that can guide you based on your specific situation (e.g., if your accounts are subject to audit).
Step 6: Confirm Your Tax Regime Choice
- The portal will then ask you to confirm your selection of the tax regime. Click “Yes” to confirm that you intend to opt out of the new tax regime.
Step 7: Fill Out the Form Sections (The Nitty-Gritty!) Form 10-IEA is generally divided into three main sections:
i. Basic Information:
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- This section will mostly be pre-filled with your personal details like PAN, name, and address. Double-check that all the information is accurate.
- Here, you’ll also indicate whether you are “opting out of the new tax regime for the first time” or “re-entering” it after having opted out previously. If it’s your first time opting out, this option might be auto-selected.
- Click “Save” once you’ve reviewed this section.
ii. Additional Information:
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- This section primarily deals with details related to IFSC (International Financial Services Centre) units, if applicable to your business.
- If you are simply opting out of the new tax regime and don’t have any IFSC unit income, this panel will likely be greyed out or not require any input.
- Click “Save.”
iii. Declaration and Verification:
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- This is where you make a self-declaration, confirming that all the information you’ve provided is correct and that you agree to the terms and conditions.
- Carefully review all the details one last time.
- Check the boxes to agree to the terms.
- Click “Save.”
- Once saved, you’ll get an option to “Preview” Form 10-IEA. Take a moment to review the entire form before proceeding.
Step 8: e-Verify Your Form
- After reviewing, click on “Proceed to e-Verify.”
- You’ll have several options for e-verification:
- Aadhaar OTP: This is often the quickest and easiest method if your Aadhaar is linked to your PAN and mobile number.
- Digital Signature Certificate (DSC): If you have a registered DSC, you can use it.
- Electronic Verification Code (EVC): You can generate an EVC through your net banking, demat account, or by creating one on the e-filing portal itself.
- Choose your preferred method and complete the verification process.
Step 9: Submit the Form
- After successful e-verification, you’ll be prompted to “Yes” to submit the form. Click it!
Step 10: Acknowledgement and Receipt
- Congratulations! Upon successful submission and e-verification, you will see a success message.
- You will receive a Transaction ID and an Acknowledgement Receipt Number. Make sure to note these down for future reference.
- You can also download the filed Form 10-IEA in PDF format from your “View Filed Forms” section under the “e-File” menu.
Crucial Things to Remember:
- File it First! Always file Form 10-IEA before filing your main Income Tax Return (ITR), especially if you have business or professional income and are opting for the old tax regime. Your ITR form will ask for the acknowledgement number and date of filing of Form 10-IEA.
- One-Time Opt-Out (Mostly): If you opt out of the new tax regime using Form 10-IEA for a particular financial year, this choice generally remains valid for all subsequent assessment years. You don’t need to file it every year unless you decide to re-enter the new regime and then opt out again later (which is allowed only once in your lifetime).
- Accuracy is Key: Double-check all details before submission. Any incorrect information can lead to processing delays or notices from the Income Tax Department.
- Keep Records: Always save a copy of your filed Form 10-IEA and its acknowledgement.
By following these steps, you can confidently file your Form 10-IEA for FY 2024-25 (AY 2025-26) and ensure you’re on the right track with your tax planning. Happy filing!
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