With Section 115BAC, the new tax regime is the default from AY 2024-25 (FY 2023-24). Taxpayers with business or professional income must file Form 10-IEA to switch back to the old regime and claim deductions like 80C, HRA, LTA, etc. This guide explains the nuances of switching, especially when business income is intermittent.

3-Year Scenario Explained

Year	Business Income	Regime Chosen	Form 10-IEA Status	Outcome
Year 1	Yes	Old regime	Filed	One-time switch used; Form 10-IEA active for future years with business income
Year 2	No	New regime	Not required	Does not cancel Form 10-IEA; switch rules not triggered because no business income
Year 3	Yes	Old regime	Already filed in Year 1	Allowed to continue old regime; option valid as long as business income continues

Key Points

– Form 10-IEA applies only if you have business/professional income.
– Non-business income taxpayers can choose new or old regime annually without restrictions.
– Switching back to new regime with business income counts as withdrawal and cannot be reversed.

Step-by-Step Filing Form 10-IEA

1. Log in to Income Tax e-Filing portal.
2. Navigate: e-File → Income Tax Forms → File Income Tax Forms → Form 10-IEA.
3. Select the relevant Assessment Year.
4. Fill Part I (basic info), Part II (additional info), and Part III (declaration).
5. Submit before ITR due date (non-audit: 15 Sept; audit: 31 Oct).
6. Save acknowledgment number for ITR filing.

FAQs

Q: Can I file Form 10-IEA multiple times?

A: Only once if you have business/professional income. After withdrawal with business income, you cannot return.

Q: What if I had no business income in between?

A: Years without business income do not count as withdrawal. Your original Form 10-IEA remains valid for future business years.

Q: Can salaried taxpayers file Form 10-IEA?

A: No. ITR-1/2 taxpayers choose regime yearly during ITR filing. Form 10-IEA applies only to ITR-3/4.

Q: Can I revoke Form 10-IEA after filing?

A: No. It is binding unless you withdraw by moving to new regime while having business income.

Q: What happens if I miss the filing deadline?

A: The new regime applies automatically, and you lose the old regime benefits for that year.

Conclusion

Form 10-IEA is crucial for taxpayers with business/professional income. Understanding its one-time nature and the effect of non-business income years ensures correct planning. Proper filing and timely decisions allow taxpayers to maximize deductions under the old regime without violating Section 115BAC rules.