Consultants with gross receipts from gigs under Rs 75 lakh can choose the presumptive scheme, provided no more than 5% of their income is in cash. In this scheme, 50% of the gross receipts are considered taxable income. However, ITR-4 has limitations, such as it cannot be used by taxpayers owning more than one house property.

Filing Form 10-IEA for the Old Regime

The new tax regime offers lower rates but requires giving up benefits like HRA and deductions under Chapter VIA (e.g., PPF or eligible donations). Taxpayers with significant tax benefits might find the old regime more advantageous. Budget 2023 has made the new tax regime the default. Those with ‘income from business or profession’ who prefer the old regime must file Form 10-IEA online before the I-T return deadline.

Experts advise that salaried taxpayers without business or professional income do not need to file this form. Moonlighters with ‘income from business or profession’ must file Form 10-IEA to opt for the old regime, which remains in effect for subsequent years unless they choose to switch back to the new regime, an option available only once. If taxpayers with business or professional income fail to file Form 10-IEA, the new regime will automatically apply, and any claimed tax benefits will be denied.