Any individual with business or professional income should submit Form 10-IE to inform the IT dept if they wish to switch from the old tax regime to the new one on or before July 31st 2023, and only then file their income tax return. The date of submitting Form 10-IE and the acknowledgement number for the submission will have to be entered in the ITR.
Those with only salaried income need not fill out Form 10-IE. They only have to choose the option under 115BAC while filing ITR 1 or ITR2.
Individuals with business/professional income wanting to return to the old tax regime should also file form 10-IE. Once they switch back to the old regime, going back to the new regime is not possible as per the current rules.
1. To file form 10-IE, login to the income tax portal and go to e-File > Income Tax Forms > File Income Tax Forms
You can either search for the form or scroll to the second page to see its listing.
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Once you select the form and choose the relevant AY, there are four sections to complete.
1. Assessing Officer (Details of Assessing Officer) – pre-filled.
2. Basic Information (provide Name, PAN, and address details) – you must enter the nature of the business or profession and the sub-sector. Those filing ITR4 or ITR3 regularly would be well aware of these.
3. Additional Information (Details of IFSC units (if any) and the option exercised u/s 115BAC)
- Choose Y/N: individual/HUF has any Unit in International Financial Services Centre(IFSC), as referred to in sub-section (1A) of section 80LA
- Choose Y/N: Whether option under clause (i) of sub-section (5) of section 115BAC has been exercised in Form 10-IE for any earlier previous year/years and is now being withdrawn? This is to find out if a switch new regime was done earlier and if the current application is to switch back. Choose N if opting for the new tax regime for the first time.
4. Declaration for the switch and Verification in the same manner as ITR via OTP or other ways.
In summary, those with business or professional income must submit form 10-IE from AY 2023-24 if they wish to switch to the new tax regime or return to the old tax-regime. Details of the submission must be entered in the relevant ITR. Salaried folk need not do this.