Answer

1. F

   Facts

   Sec 202 of the Income-tax Act 2025 keeps the new regime as default. A person with business income can opt out by the Sec 263(1) due date, and can withdraw only once. The form will be as prescribed under the Income-tax Rules 2026.

2. P

   Provisions and law

   • Sec 202, Income-tax Act 2025 (old Sec 115BAC)New regime is the default; the opt-out for business income must be made by the Sec 263(1) due date and can be withdrawn only once
   • Sec 263(1), Income-tax Act 2025 (old Sec 139(1))Return must be filed by the due date for the year
3. A

   Analysis

   The official text of Sec 202 says the option is exercised in a prescribed manner by the due date, continues for later years, and can be withdrawn once for a year other than the one in which it was exercised. After withdrawal, the person cannot opt out again unless business income ends. The form number under the 2026 Rules is not confirmed in our sources, so check the portal before filing. A Form 10-IEA filed earlier may need to be reviewed against the new rules.

4. C

   Conclusion

   1. 1Decide the regime for tax year 2026-27 well before the due date.
   2. 2Check the prescribed form on the e-Filing portal.
   3. 3File it by the Sec 263(1) due date.
   4. 4Keep the acknowledgement for the return.

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