TAXPAYERS NO LONGER HAVE TO FILE FORM 10-IE SEPERATELY
The Income Tax Department has notified that the option to opt for the new tax regime will be available for the taxpayers filing return of income in ITR 1 or ITR 2 in the return itself. There is no need for separate filing of Form 10-IE. Any individual or HUF having business income, who wishes to pay income tax as per the new tax regime can communicate to the Income Tax Department by filing Form 10-IE. Form 10-1E should be filed mandatorily by the
Assessees who are filing return in ITR 3 or 4 only (i.e with business Income), in addition to opting for the new taxation regime in the ITR. “Form 10-IE is not needed to be filed by Assessees filing in ITR 1 or ITR-2 and if they wish to opt for the new tax regime, shall provide the option in the ITR itself,” the Income Tax Department said.
The finance ministry introduced a ‘New tax regime’ in the Finance Act 2020. Form 10IE is a declaration made by the return filers for choosing the ‘New tax regime’. The new tax regime allows for lower tax rates while most of the deductions and tax benefits allowed in the old/existing tax regime are not allowed.
The choice for selecting the tax regime is to be made before filing the income tax return of the relevant financial year. The taxpayer has to communicate the selection of tax regime by sending an intimation through Form 10IE to the income tax department before the filing of ITR.
The new tax regime is applicable from the FY 2020-21, i.e. AY 2021-22. The choice between ‘New tax regime’ and ‘Old tax regime’ is available to individuals and HUF, which can be opted by filing Form 10IE.
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