New Delhi: Noida-based independent professional Alka Sharma last year belonged to the early tax return because she expected a big tax refund. “The TDS deduction of 10% on my professional income and fixed deposit interest rate yielded to almost RS 85,000, but the tax deduction I claimed would have reduced the tax to about RS 28,000,” she says. But when the expected reimbursement did not come for a few months, Sharma consulted a tax professional who pointed out that she had not submitted the Form 10-Eea to unsubscribe from the new tax regime. She immediately submitted the form 10-oeea, but it was already too late. The deadline for submitting the declaration had expired and therefore its declaration was assessed as standard on the basis of the new tax regime. “My tax -saving investments under SEC 80c, NPS contribution, home credit interest and deduction of medical insurance policies were not taken into account under the new regime,” she says. It was a precious mistake. Instead of the RS 57,000 reimbursement she had expected, Sharma only received RS 42,000 back. The IEA form must be submitted if a taxpayer with business or professional income wants to unsubscribe from the new tax regime. Taxpayers who want to shift to the new tax regime this year must also take into account the requirement to submit the form 10-oeea. For some taxpayers it is mandatory to submit this form, otherwise their transfer in tax regime will not be considered by the tax authorities. Taxpayers who submit their returns with the help of the ITR1 or ITR2 do not have to worry about this extra form. They can shift seamlessly from one regime to the other. The requirement to submit form 10-oeea only starts if you have business income and use ITR3 or ITR4. “If you have income from cases or profession, it is mandatory to submit the form 10-EOEA with your tax return to switch from one tax regime to another,” says Umesh Jethani, chartered accountant and founder of APKI Return.You do not have to submit the Form 10-EUA if you have chosen the old tax regime last year and will continue this year. But if you have chosen the old regime and now want to move to the new regime, you must submit the form. So, although it is mandatory for those who go for the old tax regime, even those who go for the new regime have to submit it.The different permutations and combinations are confusing to say the least. DIY taxpayers, who submit their own tax returns, will find it very challenging. “The form itself is very easy to fill in and requires only 3-4 clicks. It is the lack of knowledge that is a challenge of it,” says Nishant Khemani, managing partner of the Saturn Consulting Group.This is why our guide (see graphic) can tell you whether you should submit the form or not.Do you have to submit form 10-oeea?
Source: Saturn Consulting GroupIncidentally, the form 10-IA must be submitted within the expiry date. If not submitted on the due date, the form will be considered invalid. “If he has opted for the old regime, but has not submitted the Form-OEEA on the expiration date, the taxpayer will be placed under the new tax regime and taxed accordingly,” warns Nishant Khhemani, managing partner of the Saturn Consulting Group.There is more going on. Although errors in the tax return can be remedied by submitting a revised declaration, there is no story to miss the deadline to submit the form 10-oeea. As in the case of Alka Sharma, once the last date is missed, you have no choice but to go with the new regime.Until two years ago, the option to choose the tax regime was included in the tax return itself. Then it was switched off and made in a separate form that had to be submitted when choosing the new regime. The rule was changed again last year. The form had to be used to cancel the new regime. “These frequent changes have created a lot of confusion in the heads of taxpayers. This goes against the intention to simplify the tax return and to alleviate compliance,” says Chartered Accountant Pradep Sharma.
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