New Delhi: The deadline to file Income Tax Returns (ITR) for the financial year 2023-2024 (Assessment Year 2024-2025) is July 31, 2024. Missing the deadline could mean filing of belated ITR (December 31, 2024) with the required penalty among other formalities. However, tax payers –who want to stay in the Old Tax Regime–should note that if you miss the July 31 deadline, you will be automatically shifted to the New Tax Regime.
The latest Income Tax regulations say that if taxpayer fails to file their ITR within the deadline, they will be shifted to New Tax Regime, which also means that they will be forfeiting their ability to opt for the old regime for that financial year. In other words, the belated ITR will have to be filed under the new tax regime.
Form 10-IEA For Choosing Old Tax Regime
If you want to choose the Old Tax Regime (within deadline), you will have to file Form 10-IEA. Income Tax rule sayds that it is mandatory to submit Form 10-IEA for Opt out or Re-entering in to New Tax regime by Individuals, HUF, AOP (other than co-operative societies),BOI & AJP who have income from business or profession. Individuals, HUF without any business or professional income can opt out of the New Tax regime or Re-enter in to the New Tax Regime directly when they file their Income tax returns.
As per Income tax regulations Earlier, till FY 2022-23 when the new tax regime was not the default tax regime, individuals had to file Form 10-IE to specify their willingness to choose the new tax regime. However, starting FY 2023-24, the new tax regime has been set as the default tax regime. This means that if the taxpayer does not specify their intent to choose the old regime, they will be automatically enrolled in the new regime.
The default new tax regime indicates that individuals, HUF without any professional or business income can opt out of the new tax regime directly at the time of filing tax returns.
The new form 10 IEA can be used to indicate the preference for the old tax regime by Individuals, HUF, AOP (other than co-operative societies), BOI & Artificial Judicial Persons (AJP) having income from business and profession.
They have to mandatorily submit Form 10-IEA within the specified time frame under section 139(1) if they want to switch their tax regime from new to old or if they want to re-enter in the new scheme.