Those opting for new tax regime from the financial year 2020-21 onwards, will need to submit an additional Form 10-IE while submitting their income tax returns
The Central Board of Direct Taxes (CBDT) notified a new form to be filled by those opting for the new tax regime for the financial year 2020-21. This new form notified by CBDT on October 1 is Form 10-IE.
You will need to file this form at the time of filing your income tax return (ITR) in case the taxpayer has opted for the new regime.
Finance Minister Nirmala Sitharaman announced an alternative tax regime in the Union Budget 2020 speech. The new tax regime is optional, anyone opting for it had to forego most of the deductions available under the income tax law such as Section 80C, 80D, 80TTA for a deduction on savings account interest earned from a bank account. The new regime, however, offers concessional tax rates.
A taxpayer is required to opt for the new regime at the time of filing the ITR, as per newly-inserted Section 115AC of the Income Tax Act, 1961. This will be done through the new Form 10-IE notified by CBDT.
Taxpayers need to fill the form in order to convey to the tax authorities that a new tax regime has been chosen to file their ITRs. According to tax laws, any individual who has business income shall submit the form before the due date of filing ITR on July 31 or at a later date in case the deadline is extended by the government. Salaried individuals can file this form before or/at the time of filing even if ITR is filed after the due date.
Also who opt for the new tax regime each year will have to file this form every year.