CBDT Release Form 10IEA for Taxpayers: The Central Board of Direct Taxes has issued new rules to continue the election of old tax regime for Consultants and Professionals. Form 10-IEA has been issued for such taxpayers.
To continue the election of Old Tax Regime, the Central Board of Direct Taxes (CBDT) has issued new rules for Consultants and Professionals. With the change in tax slab rates from the financial year 2023-24, the Finance Ministry has kept the new tax regime as default. In such a situation, to continue getting the benefits of the old tax regime, consultants and professionals will have to compulsorily fill Form 10-IEA (FORM 10IEA). The release of this form by CBDT has brought great relief to the consultants and professionals.
The Central Board of Direct Taxes (CBDT), while issuing a notification, has issued a guideline for consultants, professionals with business income to continue the old tax regime from the current financial year i.e. FY 2023-24. It has been said in the notification that it is important to note that Budget 2023 has made the new tax regime a default tax regime. This means that in the current financial year 2023-24 (i.e. between April 1, 2023 and March 31, 2024), income will be taxed at the new income tax slab rates under the new tax regime. However, taxpayers have the option to opt for the old tax regime.
Naveen Wadhwa, DGM Chartered Accountant of Taxman.com, says that CBDT has issued new Form 10-IEA (FORM 10IEA), which consultants, professionals will have to fill to continue the old tax regime from FY 2023-24. He said that this form will allow to continue with the old tax regime, claim tax exemption and deduction.
From the financial year 2023-24, the new tax system has become the default tax system. Consultants, professionals who want to continue with the old tax regime in this financial year have to opt for it. Once he has opted for the old tax regime, he will have the option to switch to the new tax regime only once in his life. Naveen Wadhwa said that if the consultants and professionals opt for the new tax regime once, then they will not be able to opt for the old tax regime again.
As per the income tax rules, salaried taxpayers can switch between the two tax regimes as per their choice. But consultants and professionals cannot do this.
