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When you no longer have business or professional income, you are treated like any other individual. You choose the old or new regime in the return each year. Form 10-IEA is no longer needed.
ITR
Closing the business and choosing the regime again
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Provisions
Sec 115BAC (now Sec 202)
Analysis
The FAQ notes that the lock on switching applies only while business or professional income continues. For a year with salary and interest only, you pick the regime in the ITR, by the due date for the old regime. If business income comes back later and you want the old regime, Form 10-IEA is needed again by that year's due date. Keep a note of when the business stopped.
Close
- Confirm no business or professional income in the year.
- Compare regimes.
- Choose in the ITR by the due date.
- File Form 10-IEA again if business restarts and you want the old regime.
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