As individuals start tax planning for this financial year, they have the choice to either stay with the tried and tested old tax regime or take the plunge and switch to the new default tax system.
The old income tax regime made it possible for taxpayers to avail of deductions and pay taxes on the remaining income. On the other hand, the new tax regime offers taxpayers a lower rate of taxation, but they will have to forego benefits such as exemptions under section 80C and 80D.
If individuals wish to select the new tax regime, they will have to submit Form 10IE before filing taxes for the current financial year. The declaration made in Form 10IE helps the government to assess the taxpayers' choice of the tax regime, thereby allowing them to avail the benefits of the new tax regime.
Who should file Form 10IE?
Form 10IE is a declaration made by the taxpayers in order to opt for the 'New Tax Regime'. Individuals or HUFs with business or professional income must submit Form 10IE if they wish to pay income tax as per the new tax regime.
People filing their returns in other forms like ITR-1, 2, or others don't need to submit Form 10IE. Additionally, salaried individuals are not required to file Form 10IE. They can simply opt for the new regime through the ITR forms.
Form 10IE must be filed before the due date of filing ITR, i.e. 31st July or any another date in case the government extends the due date.
How to file Form 10IE?
Form 10IE must be filed online on the income tax e-filing portal.
-Log into the e-filing portal, then on the dashboard click 'e-File' and select 'Income Tax Forms' followed by 'File Income Tax Forms'.
-Search and click on 'File now' for Form 10IE and enter the assessment year. Fill in the necessary information such as the nature of the business, income from the business or profession, etc.
-Make sure to review all details before saving the information. Preview form 10IE and e-verify using either an Aadhaar OTP, digital signature certificate, or electronic verification code (EVC).
-Finally, once the e-verification is successful, an acknowledgement number will be generated.
Taxpayers should keep a note of the transaction ID and acknowledgement number for future reference. Filing this form correctly and on time is crucial to ensuring that taxpayers are able to avail of the tax benefits that the new regime offers.
