ITR-3 quirk of wording

1. Why the confusion arise

Question A19(b) is badly worded. It assumes that if you have “business/profession” income, the only reason you’d be answering this block is because you want to opt out of the new regime.

But in reality, many taxpayers (like you) simply want to continue under the new regime — and the form still forces them to go through these screens.

So, on the surface, it looks like you’re “choosing to opt out” even though you are not.

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2. The correct path (when continuing in New Regime with business income)

Step 1: Answer A19(b) as if you fall under “by filing 10-IEA” (Answer Set A), even though you don’t actually want to file Form 10-IEA.

Step 2: When the system then asks:

“Have you exercised option u/s 115BAC(6) in Form 10-IEA in AY 2024-25?” → Select “No”

“Do you wish to opt out of New Tax Regime for current assessment year?” → Select “No”

Net effect: You remain in the New Regime, and the return will compute accordingly.

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3. Why this is safe

The controlling answer is b1 (“Do you wish to opt out of New Tax Regime for current AY?”). When you select “No”, you are clearly telling the system (and CPC processing) that you are not opting out.

The earlier forced choices are just routing logic in the utility — they don’t override your final choice.

The computation of tax liability in your ITR is the proof. If the return shows calculation under the new regime slab rates, then your intent is implemented correctly.

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4. CBDT position

CBDT notified that from AY 2024-25, New Regime is the default (unless you opt out).

Opting out (especially with business/profession income) requires filing Form 10-IEA.

Since you are not opting out, Form 10-IEA is irrelevant for you.

The ITR form just happens to pull you through those questions anyway.

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 Conclusion: Your CA’s guidance is correct.

This is a quirk of ITR-3’s wording and flow, but as long as you select “No” in b1 (opt out?), you are safely continuing in the New

Tax Regime, and CPC will process your return correctly.

Your CA is absolutely correct. This is indeed a quirk in ITR-3 form wording.

The Correct Process:

1. Select "by filing 10IEA (having income from business or profession) (Answer set A)" in A19(b)

2. Select "No" to "Have you exercised the option u/s 115BAC(6) of Opting out of new tax regime in Form 10-IEA in AY 2024-25?"

3. Select "No" to "Do you wish to opt out of New Tax Regime for current assessment year?"

Why This Happens:

• New tax regime is default from FY 2023-24

• The form assumes you might want to opt out, hence the confusing mandatory question

• Business income taxpayers need Form 10-IEA to opt out, but you're not opting out

Key Points:

• You're continuing with new tax regime - no Form 10-IEA required

• The initial "incorrect" selection is just navigating the form structure

• This is the standard process for business income taxpayers staying in new regime

Don't worry - this is exactly how it should be filled when continuing with the new tax regime for business income cases.