As ordered by the Central Board of Direct Taxes (CBDT) about the procedural revision for the business owners including professionals, permitting them to carry on with the old tax regime from FY 2023-24. The same measure has been taken as the new tax regime is a default option, making it crucial for people with income from the business to learn about the mechanism.
The individual would be needed to fill the Form 10-IEA for choosing the old tax regime in the present fiscal year, CBDT mentioned. Businesspeople and professionals can use this form to select the previous tax system and benefit from any available tax exemptions and deductions.
According to the CBDT announcement, such a person with income from a business or profession should submit Form 10-IEA to opt out of the new tax regime “on or before the due date specified under sub-section (1) of Section 139 of the Income-tax Act, 1961 for furnishing the return of income for such assessment year.”
Individuals must fill out Form No. 10-IEA with pertinent information, including name, Permanent Account Number (PAN), assessment year, and status. Along with pertinent dates for opting out and executing the option, the form also questions if the person is leaving the default new tax regime or reentering it.
Such individuals have to submit Form 10IE until FY22-23 in order to choose the new tax structure.
This form was withdrawn, nevertheless, as the new tax system will be the standard starting in the fiscal years 2023–2024.
Now, if business owners or professionals want to maintain the old tax system, they must specifically choose that option. They will only have one chance to switch to the new tax regime, and once they do, they cannot go back.
According to the announcement, people must use either a digital signature or an electronic verification code to validate Form No. 10-IEA when submitting it.
The income tax return (ITR) filing deadline is July 31, 2023.
Forms ITR-3, ITR-2, ITR-1, and ITR-4 are now available online thanks to the income tax department. For individuals and Hindu Undivided Families (HUFs) with business or professional income, the ITR-3 form is the most recent form to be made available.