Form 10 IE: What is Form 10 IE Income Tax? 

Form 10IE is filed to choose the new tax regime under the Income Tax Act. 

The Union Budget 2020 introduced a new tax regime that offers a lower income tax rate without the old tax regime’s deductions. Taxpayers can choose the new tax regime to benefit from a lower tax rate. For this choice, they will have to submit a declaration. Individuals and Hindu Undivided Family (HUF) category assessees can choose Form 10IE income tax as a declaration to select the new tax regime option. 

Let us understand the nitty-gritty details of the 10IE form, its applicability, due date or timelines and how to fill the 10IE form online.  

What is the significance of the 10IE form income tax? 

The new tax regime introduced in Union Budget 2020 introduced the new tax slabs. While the new regime did not include deductions, allowances, exemptions and tax-based investments of the old regime, it had the benefit of a lower tax rate. 

Therefore, it became essential to choose between the old tax regime and the new tax regime before the income tax returns were filed. 

However, to choose the new tax regime, assessees filing ITR 3 and ITR 4 were required to file Form 10IE to avail the new tax regime benefit. These are individual taxpayers and HUF assessments. 

Assesseses with no income from profession or business were not required to file Form 10IE. Similarly, assessees filing ITR 1 and ITR 2 were also not mandated to file Form 10IE. 

What is Form 10IE applicability? 

Form 10IE can be used to opt in and out of the new tax regime choice. Salaried taxpayer types can opt in or opt out of any of the two tax regimes every year. 

Therefore, salaried taxpayers must file Form 10IE every year to choose a tax regime. 

However, this is not the case for taxpayers earning business income. Business taxpayers have a limited flexibility to choose between the new and the old tax regime. Business assessees can only file Form 10IE twice, i.e., once to opt into the new tax regime and the second time to opt-out. 

What is the Form 10IE due date? 

Taxpayers must file Form 10IE before filing their Income Tax Returns for the year under consideration. Once the new tax regime is selected, a 15-digit acknowledgement number will appear. This number must be entered to continue filing returns under the new tax regime. 

Therefore, the due date for Form 10IE filing is the ITR due date. The government determines the ITR filing due date from time to time. It is 31st July of the Assessment Year (AY) for the Financial Year (FY) under consideration. 

How do I file form 10IE? 

The steps to file form 10IE are elaborated below: 

• Visit the e-Filing web portal and log in using your UserID and password. 
• Your Dashboard will appear on your screen. On the Dashboard, click ‘e-File’ and select the ‘Income Tax Forms’ option. 
• In the dropdown menu, select Form 10IE. You can also search for the same in the search box and click ‘File Now’ to proceed. 
• Select the AY from the dropdown for which you wish to file Form 10IE. 
• Click ‘Let’s Get Started’ and check the four Form 10IE sections. 
• In the First Section, ‘Assessment Officer,’ you only have to click confirm for the pre-filled details. 
• In the Second Section, the ‘Basic Information’ check of the auto-filled information is correct. Apart from the pre-filled information, you select ‘Yes’ or ‘No’ for income from business or profession and select ‘Nature of Business’ from the sectors in the dropdown. 
• In the Third Section, ‘Additional Information’, furnish your IFSC unit details and specifications such as name, address and business nature. 
• The Fourth Section, ‘Verification’, would have a self-declaration. You can tick the ‘agree to the Terms and Conditions’ box here. 
• Preview the form and review your details.
• After review, e-Verify using your Aadhaar, OTP, DSE, or EVC. 
• Note your Transaction ID and ARN or Acknowledgement Receipt Number. 

You can download your filled Form 10IE from the ‘View Filed Forms’ on your Dashboard.

Conclusion 

The new tax regime was a benchmark in providing the taxpayer with an option to avail of different income tax-saving benefits. This assessment year’s due date for filing Form 10IE will come soon. Choose between the new and the old tax regime now.