Income Tax

Form 10-IEA: How to Opt Out of the New Tax Regime (Step-by-Step)

CA Nikhil Gupta·June 2026·7 min readITR Filing

Reviewed by CA Nikhil Gupta · Last reviewed 17 June 2026

Since FY 2023-24, the new tax regime is the default - meaning if you do nothing, you're automatically taxed under it. If you want the old regime instead and have business or professional income, you must file Form 10-IEA. Miss the deadline, and you could be locked into the new regime for the year.

The New Default: New Regime Unless You Choose Otherwise

From FY 2023-24 (AY 2024-25) onwards, the new tax regime under Section 115BAC is the default regime for all individuals, HUFs, AOPs, BOIs and artificial juridical persons. If a taxpayer does not specifically opt for the old regime, their tax will be computed under the new regime - even if the old regime would have resulted in lower tax for them.

This is a reversal from the pre-2023 position, where the old regime was the default and taxpayers had to actively opt INTO the new regime. Many taxpayers, especially those who haven't reviewed their filing process recently, are caught off guard by this default switch.

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Who Needs to File Form 10-IEA?

Taxpayer Category	How to Choose Old Regime
Salaried individuals with no business/professional income	No Form 10-IEA needed - simply select the old regime option directly within the ITR form (e.g., ITR-1/ITR-2) each year, or inform the employer for TDS purposes
Individuals/HUFs with business or professional income (filing ITR-3 or ITR-4)	Must file Form 10-IEA to opt for the old regime, on or before the due date for filing the return under Section 139(1)

Why Business/Professional Taxpayers Have Stricter Rules

For taxpayers with business or professional income, switching between regimes isn't as simple as a checkbox each year - there are restrictions on how often you can switch:

If you opt for the old regime via Form 10-IEA, you can switch back to the new regime only once in your lifetime (for a future year, by filing a withdrawal of the option).
Once you've opted out of the new regime and then opted back in, and later want to opt out again, you are permanently barred from choosing the old regime again as long as you have business/professional income.

This restriction does not apply to individuals with only salary/other-source income (no business/profession) - they can switch between old and new regimes every year simply by selecting the relevant option in the ITR, without needing Form 10-IEA at all.

When and How to File Form 10-IEA

Form 10-IEA must be filed electronically on the income tax e-filing portal, before the due date for filing your ITR under Section 139(1) (typically 31 July for non-audit cases, 31 October for audit cases).
You will receive an acknowledgement number upon successful filing - this number must be referenced in your ITR when selecting the old regime.
If you file the ITR claiming the old regime without having filed Form 10-IEA (where required), your return may be processed under the new regime by default, or treated as defective.

What If You Miss the Deadline?

No old regime for that year. If a taxpayer with business/professional income fails to file Form 10-IEA by the due date, they cannot opt for the old regime for that assessment year - their return will be processed under the new (default) regime, even if the old regime would have been more beneficial.

Step-by-Step: Filing Form 10-IEA

Log in to the e-filing portal (incometax.gov.in)
Navigate to "e-File" → "Income Tax Forms" → "File Income Tax Forms"
Search for and select "Form 10-IEA"
Choose the relevant assessment year and indicate whether you are opting for the old regime (or withdrawing a previous opt-out)
Submit and e-verify the form using Aadhaar OTP, net banking, or DSC
Note the acknowledgement number for use in your ITR

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Not sure which regime saves you more?Compare your tax liability under both regimes before deciding whether to file Form 10-IEA.

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Frequently Asked Questions

I'm a salaried employee with no business income. Do I need to file Form 10-IEA to use the old regime? ▼

No. Salaried individuals (and others) without business or professional income can simply select the old regime option directly in their ITR form (ITR-1 or ITR-2) each year - no separate Form 10-IEA filing is required, and you can switch between regimes every year.

I filed Form 10-IEA last year to opt for the old regime. Do I need to file it again this year? ▼

If you wish to continue under the old regime and you have business/professional income, you generally need to confirm your continuation in the relevant year's filing process (the exact mechanism may involve referencing your prior filing or re-filing depending on portal updates). If you want to switch back to the new regime, that counts as your one-time switch-back, after which you cannot opt for the old regime again while you have business/professional income. Check the current year's portal guidance carefully.

What happens if I file Form 10-IEA after the ITR filing due date? ▼

Form 10-IEA must be filed on or before the due date under Section 139(1) for opting for the old regime to be valid. If filed late, the old regime option is not available for that year, and your return will be processed under the new (default) regime.

Source and review trail

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Primary category: Income Tax
Official starting point: www.incometax.gov.in

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