This blog post clarifies that individuals and pensioners filing ITR-1 or ITR-2 (without business or professional income) do not need to file Form 10-IEA to switch between the old and new tax regimes on an annual basis. It explains that the choice can be made directly within the ITR form itself each year, even when opting out of the default new regime (effective AY 2024-25) or switching back to it later. The post contrasts this flexibility with the stricter requirement for those with business income (filing ITR-3/ITR-4) who must use Form 10-IEA to opt out and face limitations on switching back.

This blog provides a detailed breakdown of modifications in ITR-1 and ITR-4 forms for Assessment Year 2025-26 based on a recent analysis. It explains the new allowance for minor LTCG under Sec 112A (up to ₹1.25 lakh) in both forms, the enhanced conditional presumptive tax limits under Sec 44AD/44ADA linked to digital receipts, and common changes. These common changes include expanded disclosures for Form 10-IEA (new tax regime opt-out), mandatory specific clause selection for Chapter VI-A deductions, enhanced reporting for Sec 89A (foreign retirement income), compulsory disclosure of all active Indian bank accounts, and mandatory selection of a refund account. The post advises taxpayers on how to prepare based on these specific updates.