ITR
Old tax regime for a presumptive business
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Facts
The new regime is the default. Individuals with business or professional income opt out by filing Form 10-IEA on or before the due date of the return. A belated return cannot use the old regime.
Provisions and law
- Sec 115BAC (now Sec 202)New tax regime as default; opting out conditions
- Sec 139(1) (now Sec 263(1))Due date of return; 31 August for non-audit business or profession from AY 2026-27 (Finance Act 2026)
Analysis
If you missed the due date, the old regime is lost for AY 2026-27. Business filers can switch back to the new regime only once after opting out, so the choice is not free every year. With ₹2,00,000 of home loan interest and ₹1,50,000 of 80C, the old regime may save tax; compute both. Quote the Form 10-IEA acknowledgement in the return.
Conclusion
- Compute tax under both regimes
- If old is better, file Form 10-IEA before the due date
- Quote its acknowledgement number and date in ITR-4
- Remember that re-entry into the new regime is allowed only once
A Savvy can do this for you
Presumptive income tax return, ITR-4 (Sugam), Sec 58 (old 44AD, 44ADA, 44AE)
₹1,999
Get this doneAsk a Savvy on WhatsAppGeneral guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.