ITR Filing 2025: Opting for the Old Tax Regime? Submitting Form 10-IEA Is Now Compulsory
The Income Tax Department has made a crucial update for taxpayers filing returns for Financial Year 2024–25 (Assessment Year 2025–26). If you are planning to opt for the Old Tax Regime, you must now submit Form 10-IEA before filing your ITR. This change impacts salaried individuals, pensioners, and business owners who wish to claim deductions and exemptions not allowed under the New Tax Regime.
This article, brought to you by a trusted Tax Consultant Company in Delhi, will help you understand what Form 10-IEA is, why it is necessary, and how to submit it properly.
What Is Form 10-IEA?
Form 10-IEA is a declaration form required under Section 115BAC(6) of the Income Tax Act. This form allows taxpayers to opt out of the default New Tax Regime and continue filing their income tax return under the Old Tax Regime, which permits various exemptions and deductions like HRA, LTA, 80C, 80D, and home loan interest.
" Filing Form 10-IEA is now mandatory for taxpayers who want to stick with the Old Regime and enjoy tax benefits from deductions and exemptions. "
Why Is It Mandatory?
As per the updated rules effective from AY 2024–25, the New Tax Regime is now the default. If you do not wish to be taxed under the new structure, you must proactively declare your intention by filing Form 10-IEA.
Failing to submit this form means your income will automatically be taxed under the New Regime—even if you have claimed deductions that are only allowed under the Old Regime. This can lead to processing delays, notices, or denial of refunds.
Who Needs to File Form 10-IEA?
- Salaried individuals who wish to continue under the Old Tax Regime
- Pensioners with retirement benefits who want to claim deductions
- Freelancers or professionals with no business income
- Business owners or self-employed individuals (with specific restrictions)
" Taxpayers must file Form 10-IEA before submitting their ITR. The declaration cannot be made after filing the return. "
Deadline to Submit Form 10-IEA
Form 10-IEA must be filed before the due date for filing your income tax return under Section 139(1). That means the form should be submitted on or before July 31, 2025 (unless extended), for most individual taxpayers.
How to File Form 10-IEA?
Here is the step-by-step process:
- Login to the Income Tax e-filing portal
- Navigate to e-File > Income Tax Forms > File Income Tax Forms
- Choose Form 10-IEA – Application to opt out of Section 115BAC
- Fill in required details such as PAN, assessment year, type of income, etc.
- Verify the form using OTP or DSC
- Submit and download the acknowledgment
Points to Remember
- You must file Form 10-IEA every year if you are a salaried taxpayer opting for the Old Regime
- Business or professional income taxpayers can switch regimes only once, after which the decision is binding for life unless business ceases
- The form must be filed before the ITR—filing it after submission will not be accepted
- No physical submission is required—it’s fully online
Old Tax Regime vs. New Tax Regime: Quick Comparison
| Features | Old Regime | New Regime |
|---|---|---|
| Standard Deduction | Rs. 50,000 | Rs. 50,000 |
| 80C Deductions | Allowed (up to Rs. 1.5L) | Not Allowed |
| HRA / LTA | Allowed | Not Allowed |
| Home Loan Interest (Self-occupied) | Allowed | Not Allowed |
| Rebate u/s 87A | Up to Rs. 5L | Up to Rs. 7L |
| Default Regime | No | Yes |
" Choosing the right tax regime and submitting Form 10-IEA on time can lead to significant tax savings—especially if you are eligible for multiple deductions. "
Common Mistakes to Avoid
1. Filing ITR Before Form 10-IEA
Don’t file your income tax return before submitting Form 10-IEA. The system will assume you're under the New Regime.
2. Forgetting Annual Submission
Many salaried individuals forget that the form needs to be filed every assessment year if opting for the Old Regime.
3. Not Verifying the Form
Verification using Aadhaar OTP or DSC is necessary. Unverified forms are considered invalid.
4. Assuming Business Owners Can Switch Freely
If you have business income and you opt out of the New Regime, you can’t opt back in again unless you cease your business.
" Even a small mistake in form filing or timing can lead to losing out on your deductions. Always cross-check or consult a professional. "
Why Choose Professional Help?
As a leading Tax Consultant Company in Delhi, we ensure:
- Timely and accurate submission of Form 10-IEA
- Guidance on regime selection based on tax liability simulations
- Full support for documentation and compliance
- Personalized tax-saving advice tailored to your income profile
Our Income Tax service in Delhi and ITR Filing service in Delhi are trusted by thousands of individuals and businesses for transparent, efficient, and result-oriented tax solutions.
" Whether you’re salaried or self-employed, our Tax consultant services in Delhi simplify the complex process of choosing the right regime and filing correctly. "
Conclusion
With the New Tax Regime now set as the default, taxpayers must take proactive steps to continue benefiting from deductions under the Old Regime. Submitting Form 10-IEA is not just a formality—it’s a crucial step in ensuring your ITR reflects your intended tax structure.
Engage with the Best Tax Consultant company in Delhi to ensure timely filing, correct documentation, and maximum savings. Our Tax consultant services in Delhi, combined with robust Income Tax service in Delhi and reliable ITR Filing service in Delhi, offer complete support for a hassle-free tax season.
Take control of your taxes—choose the right regime and file Form 10-IEA with expert help today!
