Are you among the taxpayers who opted for the new tax regime this financial year but are now contemplating switching back to the old one? Well, you’re in luck because the Income Tax Department has paved the way for this transition. However, it’s essential to act swiftly and fill out Form 10-IEA before the looming deadline of July 31.
Process
Transitioning from the new tax regime to the old system involves more than a mere flick of a switch; it necessitates the completion of additional paperwork and adherence to a distinct procedure.
The freshly unveiled Income Tax Return Form (ITR) tailored for the Assessment Year 2024-25 introduces Form-10-IEA, intricately crafted for taxpayers seeking to revert to the erstwhile tax structure. Embracing the previous system mandates thorough completion of this supplementary form, ensuring compliance with the requisite regulations and facilitating a seamless transition for taxpayers navigating this fiscal shift.
Information Required
Form 10-IEA demands various pieces of information from taxpayers. Alongside basic details such as PAN number and tax payment history, individuals are required to provide insights into their experiences with both tax regimes. This comprehensive approach ensures a smooth transition back to the old system.
Form 10-IE
Consider Form 10-IEA as your ticket back to the old tax regime. It serves as a declaration form, allowing taxpayers to articulate their preference for the previous system, particularly if it offers more favorable tax exemptions. This form is crucial, especially considering that the default system automatically opts taxpayers into the new regime.
Deadline
Make sure to mark your calendars! The crucial deadline for submitting Form 10-IEA falls on July 31. Although the window for filing income tax returns can stretch until December 31 under specific circumstances, selecting the old system will no longer be feasible beyond July. It is imperative to ensure timely submission to steer clear of any potential last-minute complications or inconveniences.
Decision
If you’re considering reverting to the old tax regime, now is the time to act. By filling out Form 10-IEA before July 31, you can seamlessly transition back to the system that best suits your financial circumstances. Don’t miss out on this opportunity to optimize your tax strategy for the upcoming assessment year.
