Even consultants allowed to switch tax regime

CBDT has introduced new rules that allow consultants and professionals to maintain the old tax regime.
It is important to note that the new tax regime introduced in the 2023 budget will be the default option for the current financial year, 2023-24. If you wish to adopt the old tax regime, you need to fill out Form 10-IEA.

The CBDT has issued a notification stating that consultants and professionals with business income can continue with the existing tax system starting from the financial year 2023-24. The department’s guidelines emphasize that the new tax regime introduced in the 2023 budget will be the default tax system.

This means that in the current financial year 2023-24, income will be taxed according to the new income tax slab rates. However, if you prefer the old tax regime, you can choose to continue with it. CBDT has released a new form, Form 10-IEA, which is mandatory for consultants and professionals to fill out. This form allows the retention of the old tax regime and enables claiming tax exemptions and deductions.

Consider your options carefully
From the financial year 2023-24 onwards, the new tax regime is set as the default option. Consultants and professionals must choose to retain the old tax regime in the current financial year. It’s important to note that once you opt for the old tax regime, you will not be able to switch back to the new tax regime. Therefore, consultants and professionals should make an informed decision when selecting their tax regime. As per the rules issued by the Income Tax Department, salaried taxpayers have the option to switch between two tax regimes based on their preference. However, consultants and professionals do not have this flexibility.