Form 10-IEA: How to Opt for the Old Tax Regime (AY 2026-27)
The new tax regime under section 115BAC is the default. Taxpayers who earn business or professional income and prefer the old regime must formally opt out by filing Form 10-IEA on the e-filing portal. Filing it on time is critical - a late form locks you into the new regime for the year.
Who must file Form 10-IEA and who must not
- Must file: individuals, HUFs, AOPs (other than co-operative societies), BOIs and artificial juridical persons with income from business or profession who want to pay tax under the old regime for AY 2026-27.
- Must not / need not file: salaried taxpayers, pensioners and others filing ITR-1 or ITR-2 - they select the old regime directly in the return each year.
- The form was notified by Notification No. 43/2023 dated 21 June 2023 and can be filed only twice in a lifetime - once to opt out of the new regime and once to re-enter it.
- The form is filed online and verified with Aadhaar OTP, EVC or DSC. An acknowledgement number is generated - quote it in the ITR.
Form 10-IEA at a glance
| Particulars | Details for AY 2026-27 |
|---|---|
| Purpose | Opt out of the default new regime (or re-enter it) under section 115BAC(6) |
| Who files | Individuals, HUFs, AOPs (non co-operative), BOIs, AJPs with business/professional income |
| Where filed | incometax.gov.in > e-File > Income Tax Forms > File Income Tax Forms |
| Due date | On or before the section 139(1) due date: 31 July 2026 (non-audit), 31 October 2026 (audit) |
| Verification | Aadhaar OTP, EVC or DSC |
| How many times | Twice in a lifetime: one opt-out + one re-entry |
| Sections of the form | Basic information, additional information (IFSC unit, if any), declaration and verification |
| Effect of late filing | Opt-out invalid; tax computed under the new regime for the year |
How to file Form 10-IEA on the incometax.gov.in e-filing portal
The steps below follow the department's own Form 10-IEA user manual:
- Log in at incometax.gov.in with your PAN and password.
- On the dashboard go to e-File > Income Tax Forms > File Income Tax Forms.
- Under "Persons with Business/Professional Income" select Form 10-IEA, or type "10IEA" in the search box.
- Select assessment year 2026-27 and click Continue, then "Let's Get Started".
- Answer Yes to the question on income under the head "Profits and gains from business or profession" - the form is meant only for such taxpayers.
- Select the due date applicable to your return of income (31 July 2026 or 31 October 2026 for audit cases) and confirm the regime selection. If this is your first Form 10-IEA, "opting out" is auto-selected; if a valid opt-out already exists, "re-entering" is auto-selected.
- Confirm the pre-filled Basic Information, fill the Additional Information section about any IFSC unit (greyed out when opting out), and complete the Declaration and Verification.
- Review the preview screen, click Proceed to e-Verify, and verify with Aadhaar OTP, EVC or DSC.
- Note the transaction/acknowledgement ID - downloadable later from e-File > View Filed Forms - and quote it in your ITR-3/ITR-4.
Deadline: linked to section 139(1)
- Form 10-IEA must be submitted on or before the original due date of the return under section 139(1).
- For AY 2026-27 that is 31 July 2026 for taxpayers not requiring audit and 31 October 2026 for audit cases.
- Filing the ITR belatedly under section 139(4) does not extend the Form 10-IEA deadline. A belated opt-out is treated as invalid.
Switching rules: once for business, every year for salaried
| Taxpayer type | How to choose old regime | How often can you switch? |
|---|---|---|
| Salaried / no business income | Select in ITR-1 / ITR-2 while filing | Every year, freely |
| Business or professional income | File Form 10-IEA before the 139(1) due date | Opt out of new regime once; withdraw (re-enter new regime) once - after that, no return to old regime |
Examples
Freelancer with Rs. 18 lakh receipts
A consultant filing ITR-4 with 80C investments of Rs. 1,50,000, health insurance of Rs. 25,000 and home-loan interest of Rs. 2,00,000 may save more in the old regime. She must file Form 10-IEA before 31 July 2026, then file ITR-4 quoting its acknowledgement.
Salaried with Rs. 9 lakh salary
He wants the old regime for HRA and 80C. No Form 10-IEA is needed - he simply selects "opting out of new regime" in ITR-1. Next year he can switch back to the new regime without any form.
Form filed on 20 August 2026
A trader files Form 10-IEA after the 31 July due date along with a belated return. The opt-out is invalid, tax is recomputed under the new regime, his Rs. 1,50,000 of 80C deductions are denied and a demand notice follows.
Doctor re-entering the new regime
A doctor under section 44ADA opted for the old regime in AY 2025-26 when her home-loan interest was high. The loan is now closed, so for AY 2026-27 she files a second Form 10-IEA to withdraw the option and re-enter the new regime. This was her one withdrawal - she can never opt for the old regime again while she has professional income.
Which ITR form should be used?
Form 10-IEA filers have business or professional income, so they file ITR-3 (regular books) or ITR-4 (presumptive income under sections 44AD/44ADA). Salaried taxpayers choosing a regime inside the return use ITR-1 or ITR-2. Compare the regimes first at old vs new tax regime or with the income tax calculator. If you missed the deadline, read about belated and revised returns.
Common mistakes to avoid
- Filing the ITR under the old regime without Form 10-IEA. The CPC recomputes tax under the new regime, denies 80C/80D/HRA claims and raises a demand.
- Treating the belated-return date as the form's deadline. The form must be in by the section 139(1) date even if the return is filed late under 139(4).
- Salaried taxpayers filing Form 10-IEA unnecessarily. Without business income the regime choice is made inside ITR-1/ITR-2 each year.
- Forgetting the acknowledgement number. Mismatched or missing Form 10-IEA details in the ITR can invalidate the old-regime claim.
- Burning the once-in-a-lifetime switch casually. Once you re-enter the new regime, the old regime is gone for good while business income continues.
- Not e-verifying the form. An unverified Form 10-IEA is incomplete; confirm it appears under View Filed Forms.
Documents to keep ready
- PAN and e-filing portal login with Aadhaar OTP, EVC or DSC for verification.
- Nature of business/profession details and date from which it is carried on.
- Previous Form 10-IE/10-IEA acknowledgement if you opted earlier.
- Old-regime deduction proofs: 80C, 80D, HRA rent receipts, home-loan interest certificate.
Frequently asked questions
Who needs to file Form 10-IEA for AY 2026-27?
Only individuals, HUFs, AOPs (other than co-operative societies), BOIs and artificial juridical persons with income from business or profession who want to opt out of the default new regime. Salaried taxpayers simply choose the regime inside the ITR form.
What is the due date for filing Form 10-IEA?
On or before the section 139(1) due date - 31 July 2026 for non-audit taxpayers and 31 October 2026 for audit cases for AY 2026-27. A form filed after this date is invalid for the year.
Can I switch between old and new regime every year?
Salaried and other non-business taxpayers can switch every year while filing. Taxpayers with business or professional income can opt out of the new regime only once and re-enter only once - after re-entering they cannot return to the old regime.
What happens if Form 10-IEA is filed late?
The opt-out is invalid for that year. Tax is computed under the new regime, old-regime deductions are denied, and a demand is usually raised if the return was prepared under the old regime.
How is Form 10-IEA filed on the e-filing portal?
Log in at incometax.gov.in, go to e-File > Income Tax Forms > File Income Tax Forms, search for Form 10-IEA, select AY 2026-27, confirm business/professional income, complete the three sections and e-verify with Aadhaar OTP, EVC or DSC. Keep the acknowledgement for your ITR.
Do I need to file Form 10-IEA every year to stay in the old regime?
No. Once filed, the opt-out continues automatically for later years. A second form is needed only to withdraw the option and re-enter the new regime - and that can be done only once.
Get expert-assisted filing
All India ITR can work out whether the old regime actually saves you tax, file Form 10-IEA correctly before the due date and prepare your ITR-3/ITR-4 before filing.
Related current ITR guides
More AY 2026-27 tax guides
Save tax: Home loan benefits · NPS (80CCD) · Donations (80G) · Education loan (80E) · Interest income (80TTA/80TTB) · Form 15G/15H · Capital gains exemptions (54/54F/54EC)
Investors and traders: F&O and intraday tax · ESOP and RSU tax · Share buyback tax · Foreign income and Schedule FA · Gift tax (56(2)(x)) · HUF taxation
Calculators and tools: Income tax calculator · Advance tax calculator · 80C tax-saving calculator · NPS calculator · Gratuity calculator · EPF calculator · Crypto tax calculator · HRA calculator
Filing and compliance: Section 87A rebate · Marginal relief · Form 10-IEA · PAN-Aadhaar link · AIS and TIS · ITR-U updated return · Discard ITR and condonation · TDS on rent and property · Income Tax Act 2025
Sources reviewed
This guide is for general understanding. The once-in-a-lifetime switching restriction applies as long as business income continues; taxpayers whose business income ceases should take specific advice before changing regimes.
