For 10-IEA issue: Want to re-enter new regime in AY 2026-27, but portal shows "Opting Out"

743 views 3 replies

Mehul Soni

CA - Business

225 Points Posted on 04 June 2026

Hi everyone, need some help with Form 10-IEA / new tax regime selection

My case is like this:

For AY 2024-25, I had business/profession income and I filed Form 10-IEA to opt out of the new regime. The filed form clearly shows “Opting Out”, so I chose the old regime for that year.

For AY 2025-26, I had only salary income and filed ITR-1. I filed that return also under the old regime, not the new regime. So technically, after opting out in AY 2024-25, I have not re-entered the new regime yet.

Now for AY 2026-27, I again have business/profession income and I want to go back to the new regime

So I went to file Form 10-IEA, expecting the form/preview to show “Re-entering” the new regime. But on the preview page it is showing:

“Whether opting out of or re-entering the regime provided under section 115BAC: Opting Out”

This is confusing because I don’t want to opt out again. I already opted out earlier. Now I want to re-enter the new regime.

I don’t want to accidentally submit Form 10-IEA with “Opting Out” and get pushed into the old regime again for AY 2026-27.

Has anyone faced this exact issue?

Should the Form 10-IEA automatically show "Re-entering” in my case?

Or is there some specific option inside ITR-4 where I need to select that I do not want to continue opting out of the new regime?

Replies (3)

Quick Summary

A taxpayer who opted out of the new tax regime through Form 10-IEA in AY 2024-25 wants to re-enter in AY 2026-27. The portal incorrectly shows "Opting Out" instead of "Re-entering." Users advised not to submit the form until the status issue is resolved and to raise a grievance if needed.

Aashok FC Advisory

Finance Compliance Consultant

1111 Points Posted on 04 June 2026

The "Opting Out" label you see is likely a default portal display; you must ensure you actively select the "Re-enter" option within the Form 10-IEA interface. Verify that your ITR-4 schedule matches this selection, and consider professional guidance before final submission to avoid a permanent default to the Old Regime.

Tax Garden

Tax Consultant

1086 Points Posted on 04 June 2026

This is a known portal confusion. Let me walk you through what is happening.

When you filed Form 10-IEA in AY 2024-25 to opt out, your status became Old Regime for that year. For AY 2025-26 you had only salary income and filed ITR-1. ITR-1 does not use Form 10-IEA at all. The regime choice in ITR-1 is just a dropdown in the return, not a formal election under Section 115BAC. It does not change your Form 10-IEA status with the department.

So heading into AY 2026-27, your Form 10-IEA status is still Opted Out (Old Regime) from the AY 2024-25 filing. To re-enter the new regime for AY 2026-27, you need to file Form 10-IEA again, and this time it should show Re-entering the new regime.

The portal showing Opting Out is likely a session/sync issue. Log out completely, clear browser cookies and cache, log back in, and re-access Form 10-IEA from the IT portal services section. The form status is fetched from your prior filing history and sometimes needs a fresh session to load correctly.

If the portal still shows Opting Out after a fresh login, raise a grievance on the IT portal under Income Tax Return with subject: Form 10-IEA status mismatch AY 2026-27.

DO NOT submit Form 10-IEA with Opting Out if you want to re-enter the new regime. Submitting the wrong election is very difficult to correct after the filing deadline.

This [standard deduction and new regime guide for AY 2026-27](https://taxgarden.in/blog/standard-deduction-75000-new-tax-regime-ay-2026-27) also covers the Rs 75,000 standard deduction available under the new regime, useful for comparing the two regimes for your situation.