Switching income tax regimes this year? Don’t forget Form 10-IEA, one miss, and you're stuck
The Income Tax Department's evolving rules around Form 10-IEA are proving to be a minefield for taxpayers with business or professional income.
- Sep 7, 2025,
- Updated Sep 7, 2025 12:08 PM IST
A costly oversight around Form 10-IEA is catching many self-employed taxpayers off guard — one missed step, and your tax return could default to the new regime, wiping out key deductions and refunds.
The Income Tax Department's evolving rules around Form 10-IEA are proving to be a minefield for taxpayers with business or professional income. If you're filing your return using ITR-3 or ITR-4, this one form could decide whether you're taxed under the old or the new regime — regardless of your intent.
The confusion stems from the fact that Form 10-IEA is mandatory if you're switching tax regimes, but only for taxpayers with business or professional income — typically those using ITR-3 or ITR-4. Failing to file the form within the due date (usually September 15 for non-audit cases) results in the return being assessed under the new regime by default, where common deductions like Section 80C investments, NPS contributions, home loan interest, and health insurance premiums are not allowed.
Here’s how it works:
If you filed ITR-3 or ITR-4 last year under the old regime, and want to stay in the old regime, you do not need to file Form 10-IEA.
But if you're switching from old to new, or from new to old, and you’re using ITR-3 or ITR-4, you must file Form 10-IEA.
If you’re continuing with the new regime after using it last year, and filing ITR-3 or ITR-4 again, then no form is needed — unless you had earlier opted out via 10-IEA.
If you use ITR-1 or ITR-2 (no business income), you're free to switch regimes without filing this form.
The form itself is easy to submit online and takes just a few clicks. But if you miss the deadline or skip it by mistake, there is no fix. Revised returns won’t help, and the form cannot be withdrawn or edited once e-verified. The only option left is to file a new Form 10-IEA in the next year to change regimes again — but with limitations.
Worse, the rules have changed multiple times in recent years. Earlier, the tax regime option was part of the ITR form itself. Now, Form 10-IEA is a separate, deadline-sensitive filing — one that many DIY taxpayers simply overlook, resulting in tax bills thousands higher than expected.
A costly oversight around Form 10-IEA is catching many self-employed taxpayers off guard — one missed step, and your tax return could default to the new regime, wiping out key deductions and refunds.
The Income Tax Department's evolving rules around Form 10-IEA are proving to be a minefield for taxpayers with business or professional income. If you're filing your return using ITR-3 or ITR-4, this one form could decide whether you're taxed under the old or the new regime — regardless of your intent.
The confusion stems from the fact that Form 10-IEA is mandatory if you're switching tax regimes, but only for taxpayers with business or professional income — typically those using ITR-3 or ITR-4. Failing to file the form within the due date (usually September 15 for non-audit cases) results in the return being assessed under the new regime by default, where common deductions like Section 80C investments, NPS contributions, home loan interest, and health insurance premiums are not allowed.
Here’s how it works:
If you filed ITR-3 or ITR-4 last year under the old regime, and want to stay in the old regime, you do not need to file Form 10-IEA.
But if you're switching from old to new, or from new to old, and you’re using ITR-3 or ITR-4, you must file Form 10-IEA.
If you’re continuing with the new regime after using it last year, and filing ITR-3 or ITR-4 again, then no form is needed — unless you had earlier opted out via 10-IEA.
If you use ITR-1 or ITR-2 (no business income), you're free to switch regimes without filing this form.
The form itself is easy to submit online and takes just a few clicks. But if you miss the deadline or skip it by mistake, there is no fix. Revised returns won’t help, and the form cannot be withdrawn or edited once e-verified. The only option left is to file a new Form 10-IEA in the next year to change regimes again — but with limitations.
Worse, the rules have changed multiple times in recent years. Earlier, the tax regime option was part of the ITR form itself. Now, Form 10-IEA is a separate, deadline-sensitive filing — one that many DIY taxpayers simply overlook, resulting in tax bills thousands higher than expected.