How to switch to Regime in myITreturn? – myITreturn Help Center

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The new tax regime is the default regime. However, eligible taxpayers may choose the old tax regime where exemptions, deductions and loss adjustments make it more beneficial.

First Identify the Correct Filing Period

Particulars	AY 2026-27	Tax Year 2026-27
Income period	1 April 2025 to 31 March 2026	1 April 2026 to 31 March 2027
Governing law	Income-tax Act, 1961	Income-tax Act, 2025
Relevant regime provision	Section 115BAC	Section 202
Default regime	New tax regime	New tax regime
Separate Form 10-IEA	Required in specified business-income cases	Not required under the Income-tax Rules, 2026
Return filing period	During 2026	Generally during 2027

Important: Although the Income-tax Act, 2025 came into force on 1 April 2026, the return for income earned during FY 2025-26 must still be filed for AY 2026-27 under the Income-tax Act, 1961.

Decision Guide: How Should You Switch the Regime?

Case 1: AY 2026-27 Without Business or Professional Income

This generally covers taxpayers filing ITR-1 or ITR-2 without income under the head “Profits and gains of business or profession.”

You may choose between the old and new tax regimes directly in the income-tax return. A separate Form 10-IEA is not required.

You may ordinarily reconsider the regime every year, subject to selecting the option correctly in the return and filing within the applicable conditions.

Case 2: AY 2026-27 With Business or Professional Income

This generally includes taxpayers using ITR-3 or ITR-4 who have business or professional income.

For AY 2026-27:

The new tax regime remains the default.
To opt out of the new regime and use the old regime, Form 10-IEA must be filed on or before the due date under Section 139(1).
Form 10-IEA is also used where an eligible taxpayer withdraws the earlier option and re-enters the new regime.
After re-entering the new regime, the taxpayer generally cannot opt for the old regime again while continuing to have business or professional income.

The Form 10-IEA acknowledgement number and filing date should be retained and reported in the return wherever required.

Case 3: Tax Year 2026-27 Under the Income-tax Act, 2025

For income earned between 1 April 2026 and 31 March 2027, Section 202 of the Income-tax Act, 2025 makes the new regime the default.

Section 202(4) continues to impose restrictions on repeated switching by taxpayers having business or professional income. However, Rule 136 of the Income-tax Rules, 2026 provides that the option or withdrawal is to be exercised in the return of income itself. It does not prescribe Form 10-IEA.

Therefore, Form 10-IEA is not required for Tax Year 2026-27. The regime choice will be made through the return filed under Section 263(1) of the Income-tax Act, 2025.

The return for Tax Year 2026-27 is not the same as the AY 2026-27 return. It will generally become due during 2027.

Steps to Switch the Regime in myITreturn

Step 1: Sign In and Select the Taxpayer

Step 2: Complete the Questionnaire

Answer the tax-profile questions relating to:

residential status;
salary or pension;
house property;
capital gains;
business or professional income;
foreign income or assets;
deductions; and
other applicable income sources.

Why this answer matters: The answer relating to business or professional income determines whether Form 10-IEA is relevant for AY 2026-27.

Step 3: Import and Review Income Details

Use the available prefill or Income Tax Department import facility and review:

Form 16 salary details;
interest and dividend income;
capital gains;
business or professional income;
house-property income;
TDS and TCS;
advance tax and self-assessment tax; and
deduction information.

Prefilled information should be verified against Form 16, AIS, Form 26AS, bank statements and supporting documents.

Step 4: Enter Deductions and Exemptions

Enter the deductions and exemptions that may be available under the old regime, such as:

eligible HRA exemption;
Section 80C investments;
medical-insurance deduction;
eligible housing-loan interest;
qualifying donations; and
other permitted deductions.

Many commonly claimed exemptions and deductions are unavailable under the new regime. Therefore, compare the tax liability only after entering all relevant information.

Step 5: Open the Tax Computation

Open the Income-tax Summary, Detailed Computation or corresponding tax-calculation screen.

Review the calculation under both regimes, including:

gross total income;
exemptions and deductions;
taxable income;
normal-rate and special-rate income;
rebate;
surcharge and cess;
TDS and other taxes paid; and
final tax payable or refund.

Do not select a regime merely because it has lower slab rates. The correct choice depends on the taxpayer’s income composition, deductions, exemptions and losses. The Income Tax Department also recommends comparing the tax liability under both regimes.

Step 6: Select the Preferred Regime

Choose the regime producing the appropriate tax result after reviewing the computation.

For AY 2026-27 Without Business Income

Select the old or new tax regime directly in the return. No Form 10-IEA is required.

For AY 2026-27 With Business Income

Where you are opting out of the new regime or validly re-entering it:

File Form 10-IEA separately on the Income Tax e-Filing Portal.
File it on or before the applicable Section 139(1) due date.
Save the acknowledgement.
Enter the acknowledgement number and filing date in the return or myITreturn workflow wherever requested.
Select the regime consistent with the Form 10-IEA filed.

Form 10-IEA can be accessed on the e-Filing Portal through: Read Article Here

Portal path: e-File → Income Tax Forms → File Income Tax Forms → Persons with Business/Professional Income → Form 10-IEA.

For Tax Year 2026-27

When the Tax Year 2026-27 return workflow becomes available, the option will be exercised through the return itself under Rule 136. A separate Form 10-IEA should not be filed merely for choosing the regime under the Income-tax Act, 2025.

Step 7: Review Any Earlier Regime Option

Taxpayers with business or professional income should check whether they had previously:

opted out of the new regime;
filed Form 10-IEA;
withdrawn the old-regime option; or
re-entered the new regime.

A valid election or option that was in force immediately before commencement of the Income-tax Act, 2025 is generally deemed to have been exercised under the corresponding provision of the new Act.

Find Form 10-IEA option in myITreturn under Other Details, fill in the acknowledgment number to switch the regime.

Check earlier elections before changing the regime. Selecting a different regime without considering the earlier option may result in an invalid or inconsistent return.

Step 8: Confirm the Regime Before Submission

Before confirming the return, verify that:

the selected regime matches the final computation;
deductions restricted under the selected regime have not been claimed;
Form 10-IEA details have been entered where applicable for AY 2026-27;
carried-forward losses and depreciation have been treated correctly;
Form 16 and employer TDS details have been reconciled; and
the return does not contain contradictory regime selections.

Once satisfied, proceed to confirm the return.

Step 9: Submit and E-Verify the Return

Submit the return through myITreturn and complete e-verification through an available method, such as Aadhaar OTP, net banking, bank-account EVC or another permitted method.

Check the dashboard for:

acknowledgement number;
filing status;
ITR-V;
e-verification status; and
any validation or processing message.

Does the Regime Declared to the Employer Control the ITR?

No.

An employee may declare the intended regime to the employer so that salary TDS can be calculated during the year. If no declaration is provided, the employer generally deducts tax according to the default new regime.

However, the employer declaration does not by itself constitute the final statutory regime option. The taxpayer must make the appropriate selection while filing the return and, for applicable AY 2026-27 business-income cases, must separately file Form 10-IEA.

For Tax Year 2026-27, the employer declaration continues to serve the payroll and TDS process, while Rule 136 places the statutory regime selection in the return.

What Happens if the ITR Regime Differs From the Employer Declaration?

The return may be filed under a different eligible regime even where the employer deducted TDS under another regime.

myITreturn will recompute the final tax liability using the regime selected in the return. This may result in:

additional self-assessment tax payable; or
a refund of excess TDS.

A difference between the employer declaration and the final ITR selection does not automatically invalidate the return.

Common Mistakes to Avoid

Confusing AY 2026-27 With Tax Year 2026-27

AY 2026-27 relates to income earned up to 31 March 2026 and remains governed by the Income-tax Act, 1961. Tax Year 2026-27 begins on 1 April 2026 and is governed by the Income-tax Act, 2025.

Filing Form 10-IEA When It Is Not Required

Taxpayers without business or professional income do not need Form 10-IEA merely to choose the old regime for AY 2026-27.

Form 10-IEA is also not prescribed for exercising the Section 202 option for Tax Year 2026-27.

Filing Form 10-IEA After the Due Date

For AY 2026-27 business-income cases, filing Form 10-IEA after the applicable Section 139(1) due date may make the old-regime option invalid.

Relying Only on the Employer’s Selection

The regime used by the employer for TDS is not necessarily the regime that must be used in the final return.

Changing the Regime After Finalising the Computation

Changing the regime can alter deductions, exemptions, house-property treatment, losses, rebate and tax payable. Review the complete computation again after every regime change.

Conclusion

To switch tax regimes in myITreturn, first complete all income and deduction details, compare the tax calculation under both regimes and then confirm the preferred option before submission.

For AY 2026-27, taxpayers without business or professional income may select the regime directly in the return. Taxpayers having business or professional income may need Form 10-IEA before the Section 139(1) due date.

For Tax Year 2026-27, the Income-tax Act, 2025 and Rule 136 apply. The regime option is exercised through the return itself, and a separate Form 10-IEA is not prescribed.

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