Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Salaried: switch yearly
You can choose afresh each year in your return, even if your employer deducted TDS under the other regime — it’s reconciled when you file.
Business income: restricted
Once you opt out of the new regime, going back is limited, so plan it carefully. Confirm the current rule (Form 10-IEA).
The Form 10-IEA mechanics
How freely you can switch depends on whether you have business income. A salaried person, or anyone without business or professional income, chooses afresh every year simply by selecting the regime when filing the return — you can be old one year and new the next, with no special form. If you have business or professional income and want the old regime (since the new one is the default), you must file Form 10-IEA to opt out, and the catch is that you can switch back to the new regime once, after which you can’t return to the old regime again while you have business income. So for the self-employed it’s effectively a one-way street with a single exception, and worth planning rather than toggling. In all cases, tell your employer your intended regime at the start of the year so salary TDS is deducted under the right one; if it’s deducted under the other regime, it’s reconciled when you file, but matching it avoids an unexpected refund or shortfall. Because the choice resets the deductions you can claim, decide it alongside your investment and home-loan plans for the year, not as an afterthought at filing. Confirm the current Form 10-IEA timing, which is tied to the return due date.