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New Act — Section 202 (Old 115BAC)

Section 202 of Income Tax Act 2025 (Old 115BAC): New Regime Rules

Old Sec 115BAC = New Sec 202. The new regime is the default; salaried can switch yearly, business-income filers need Form 10-IEA by the ITR due date and face stricter switch-back rules.

Switching rules

TaxpayerOpting out of new regimeSwitching back
Salaried / no business incomeJust choose old regime in the ITR each yearFree, every year
Business / professional incomeForm 10-IEA by ITR due date (miss = stuck in new)Restricted — limited switches + conditions
Which regime wins for you → · What survives in new →

Switching in real life (two cases)

  • Priya (salaried, no business): picks old regime this year for big HRA, new next year after moving in with parents — just ticks the ITR option each year. Zero paperwork.
  • Arjun (freelancer, 44ADA): wants old regime → must file Form 10-IEA by 31 July. Misses it? Stuck in new regime for the whole year. Switch-backs later are restricted.
  • Employer TDS ≠ final choice: your 12BB regime declaration only sets TDS — the ITR choice is what counts.

Filing Form 10-IEA (business income + old regime) — steps

  • 1. E-filing portal → e-File → Income-tax Forms → File Income Tax Forms.
  • 2. Select Form 10-IEA for the correct Assessment Year.
  • 3. Declare opting OUT of the new regime (115BAC/202 default) — fill business details as asked.
  • 4. Verify with Aadhaar OTP/EVC — unverified 10-IEA = unfiled 10-IEA.
  • 5. Deadline: 31 July (with the return) — miss it and you're locked into new regime for the year.

Two warnings from real cases: (a) withdrawing from 10-IEA later and re-entering has restricted switch-backs — treat the choice as semi-permanent; (b) salaried-only taxpayers NEVER need this form — if your 'advisor' files 10-IEA for pure salary income, get a new advisor.

📌 Remember: new is the DEFAULT — silence picks it for you
Since FY 2023-24, the new regime applies unless you actively opt out (ITR tick for salaried, 10-IEA for business). Do nothing = new regime. That's perfect for most — but old-regime loyalists must consciously choose EVERY year. Check your filed ITR's regime line once: we've seen taxpayers 'in old regime' for years who were actually defaulted to new since 2023. The default is sensible; the surprise isn't.

By TaxSetu Editorial Team · Last reviewed: 7 October 2026

Based on the Income-tax Act 2025, Income Tax Rules 2026 and CBDT notifications; sections per the Income-tax Act 1961 (as amended) with 2025-Act mappings where notified · Verify on the official portal: incometax.gov.in

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Frequently Asked Questions

The new 115BAC: the new regime is the default. Salaried filers switch yearly in the ITR; business-income filers need Form 10-IEA by the due date.

No — business-income switch-backs are restricted with conditions, unlike salaried filers who choose freely each year. Compare.

Business-income filers who miss the ITR due date are stuck in the new regime for that year.