Form 10-IEA – Continuing Old Regime

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Priti B

21 Points Posted on 24 August 2026

Query: Form 10-IEA – Continuing Old Regime

I filed my AY 2025-26 ITR-3 under the Old Tax Regime (115BAC: NO). I also have business income/loss from F&O.

For AY 2026-27, I understand the New Tax Regime is now the default. My CA says that even though I was already in the Old Regime last year, choosing Old Regime again is treated as opting out of the default New Regime, so Form 10-IEA is required.

Is this correct? Does filing Form 10-IEA for AY 2026-27 count as my one-time switch, or does the one-time restriction apply only when I later switch from Old Regime to New Regime?

My intention is to continue Old Regime now and preserve my one-time option to move to New Regime in a future year.

Would appreciate clarification from tax professionals.

Replies (2)

Quick Summary

For AY 2026-27, the New Tax Regime is the default. If you wish to continue under the Old Tax Regime, you must file Form 10-IEA annually to opt out. Filing this form to remain in the Old Regime does not count as your one-time switch; that restriction only applies when you decide to permanently move from the Old to the New Tax Regime in the future. Ensure you file Form 10-IEA before the ITR due date (31 August for non-audit business income) to maintain your choice.

Aashok Kumar Sharma

Finance/Compliance Consultant

69825 Points Posted on 24 August 2026

Your CA is correct that Form 10-IEA must be filed for AY 2026–27 to opt out of the default New Regime. Filing Form 10-IEA to remain in the Old Regime does not count as your one-time switch; it merely maintains your current choice. Your single lifetime switch is reserved for when you eventually choose to exit the Old Regime and move back into the New Tax Regime in a future year.

Tax Garden

Tax Consultant

2036 Points Posted on 25 August 2026

Filing Form 10-IEA each year to CONTINUE old regime does not consume your one-time switch option. That restriction applies only when you decide to move from old to new.

Here is the distinction:

Form 10-IEA is the annual opt-out declaration. Business income taxpayers must file it every year to stay in old regime, since new regime is the default from FY 2024-25 onwards. Filing it this year is just routine compliance, not a switch.

The ONE-TIME restriction kicks in only when you decide to permanently move from old regime to new regime. Once you exercise that, you cannot go back to old regime as long as you have business income.

So your plan works exactly as intended: file 10-IEA this year to continue old regime, and preserve your one-time option to move to new regime in a future year.

Two things to keep in mind:
- File Form 10-IEA BEFORE the ITR due date (31 August for non-audit business income). If you miss it, you lose old regime for that year even without exercising the one-time switch.
- If you have salary plus business income, ITR-3 governs and the 10-IEA rule applies.

This [Form 10-IEA and tax regime switching guide for AY 2026-27](https://taxgarden.in/blog/how-to-switch-old-new-tax-regime-form-10-iea-itr-ay-2026-27) covers the step-by-step and the one-time switch conditions in detail.