ITR Filing Alert: Why Form 10-IEA Could Save Your Refund

Kokila Chokkanathan
As the deadline for Income Tax Return (ITR) filing for FY 2024-25 approaches, taxpayers must decide between the old tax regime and the new tax regime. But here’s the catch—if you belong to certain categories and don’t file Form 10-IEA, your return will automatically be processed under the new regime. This could shrink your refund or increase your liability.

Here’s everything you need to know in simple points.


📝 What Is Form 10-IEA?

  • A declaration form under Section 115BAC for taxpayers with business or professional income.
  • Mandatory if you are filing ITR-3 or ITR-4.
  • Without it, the system defaults you to the new regime, ignoring your preference.
    👉 Meaning: Even if you wanted old regime deductions, you’ll lose them if the form is missing.

👥 Who Needs to File It – And Who Doesn’t?

✅ Not Required

  • ITR-1 (Sahaj): Salaried income < Rs 50 lakh, one house property, no business income.
  • ITR-2: For those with capital gains, multiple properties, or foreign assets (no business income).
    👉 These taxpayers can directly select old or new regime while filing.
❌ Required

  • ITR-3: Individuals earning from business or profession, including firm partners.
  • ITR-4 (Sugam): Individuals/HUFs/firms (except LLPs) with presumptive income under Sections 44AD/44ADA/44AE.
    👉 For these categories, Form 10-IEA is a must if you want to switch regimes.

💻 How to File Form 10-IEA Online

Log in to the Income Tax e-filing portal with PAN and password.

Go to e-File → Income Tax Forms.

Select Form 10-IEA.

Enter your income, deductions, and exemption details.

Submit and complete e-Verification.

⚠️ Must be filed within due date under Section 139(1). Late filing = invalid.


💸 Why It Matters for Refunds

Skipping Form 10-IEA could cost you thousands.

  • Example: A taxpayer from noida planned her return under the old regime.
  • She forgot to file Form 10-IEA.
  • Result: Refund dropped from Rs 57,000 to Rs 42,000.
👉 Lesson: Forgetting the form can slash your refund.


⚖️ Old vs New Regime – Quick Recap

  • Old Regime: Higher tax rates but deductions galore (80C, 80D, HRA, etc.).
  • New Regime: Lower rates but minimal deductions.
  • For ITR-3/4, once you opt for the new regime, you can’t switch back later.

✅ Final Takeaway

If you’re filing ITR with business or professional income:

  • ✔️ Decide your regime carefully.
  • ✔️ File Form 10-IEA on time.
  • ✔️ Double-check before submitting.
Doing so will protect your refund, prevent surprises, and keep you fully compliant.

 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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