ITR Filing 2025: Opting for Old Tax Regime? Know Why Form 10-IEA is Mandatory

With the income tax department releasing ITR-1, ITR-3, ITR-4, and ITR-5 forms for Assessment Year (AY) 2025–26, taxpayers, especially salaried individuals, professionals, and pensioners, are gearing up for return filing. A crucial part of this process is selecting between the default New Tax Regime and the Old Tax Regime.

If you wish to continue with the Old Tax Regime, filing Form 10-IEA becomes mandatory, particularly for those earning income from business or profession.

What is Form 10-IEA?

Form 10-IEA is a formal declaration required under the Income Tax Act for taxpayers who choose to opt out of the New Tax Regime and revert to the Old Tax Regime. This form must be submitted by:

• Individuals
• Hindu Undivided Families (HUFs)
• Associations of Persons (AOPs) – excluding co-operative societies
• Bodies of Individuals (BOIs)
• Artificial Juridical Persons

If the taxpayer has business or professional income and wants to shift to the Old Tax Regime, they must file Form 10-IEA before the due date of return filing under Section 139(1).

When is Form 10-IEA Required?

Form 10-IEA is mandatory only if you:

• Have income from business or profession, and
• Are filing ITR-3 or ITR-4, and
• Wish to opt for the Old Tax Regime instead of the default New Regime

For those without business or professional income, the switch to the Old Tax Regime can be made directly in the ITR form by selecting the appropriate option—no separate Form 10-IEA is needed.

Read More: ITR Filing for AY 2025–26: Which ITR Form from 1 to 5 Should You Use?. 

Step-by-Step Guide to Filing Form 10-IEA

1. Basic Details

• Name (as per PAN)
• Permanent Account Number (PAN)
• Assessment Year (For FY 2024–25, the AY is 2025–26)
• Date of Birth
• Complete Address

2. Choice of Regime

Indicate whether you are:

• Opting out of the new tax regime for the first time, or
• Withdrawing a previous declaration and re-entering the new regime

Specify the commencement date if switching regimes.

3. Business or Professional Income

• Confirm if your income includes "Profits and Gains from Business or Profession"
• Declare the nature of the business or profession
• Provide information regarding any units in an IFSC (International Financial Services Centre) under Section 80LA(1A)

4. Details of Earlier Form 10-IE (if any)

If Form 10-IE (used prior to 2023) was previously submitted to opt for the old regime, mention those details here for continuity.

5. Final Declaration

Confirm the authenticity of the details provided. This includes a digital or manual signature, depending on the mode of filing.

Who Must Submit Form 10-IEA?

Filing Form 10-IEA is compulsory for:

• Individuals earning income from a business or profession, and
• Intending to switch from the New Tax Regime to the Old Regime

This form must be submitted before the due date of return filing as prescribed under Section 139(1) of the Income Tax Act.

Importance of Timely Submission

Choosing the applicable tax regime impacts:

• Your applicable income tax rate
• Deductions and exemptions available to you
• The final tax payable or refund amount

A missed deadline or incorrect submission can result in default classification under the New Tax Regime.

Conclusion

Form 10-IEA plays a pivotal role for taxpayers who wish to move away from the default New Tax Regime and benefit from the deductions available under the Old Tax Regime. Ensuring timely and accurate filing of this form is essential for appropriate tax treatment for AY 2025–26.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.