What is 80-IAC tax exemption?

It is a 3-year income tax holiday on profits for recognized startups under the Startup India program.

Is DPIIT recognition enough for tax exemption?

No, DPIIT recognition is for benefits like easier compliance; 80-IAC requires a separate approval from the IMB.

How many years of tax holiday can I get?

You get 100% tax exemption for any 3 consecutive years out of the first 10 years of your business.

The Inter-Ministerial Board (IMB) is the authority that reviews and approves 80-IAC tax exemption applications.

Can a Partnership Firm get 80-IAC?

No, only Private Limited Companies and LLPs are eligible for the 80-IAC tax holiday.

What is the turnover limit for 80-IAC?

The startup's total turnover should not have exceeded ₹100 Crores in any financial year since incorporation.

What counts as 'Innovation'?

The board looks for products or services that are new, significantly improved, or use advanced technology to solve a problem.

What if my application is rejected?

You can re-apply after addressing the concerns raised by the board or if there is a significant change in your business model.

Service

80-IAC Tax Exemption for Startups

Expert assistance for 80-IAC tax exemption. We help DPIIT recognized startups apply for a 3-year income tax holiday under Section 80-IAC.

The Ultimate Tax Benefit for Indian Startups

Expert assistance for 80-IAC tax exemption. We help DPIIT recognized startups apply for a 3-year income tax holiday under Section 80-IAC.

Get a 3-year tax holiday for your DPIIT-recognized startup. Expert assistance in preparing and filing the 80-IAC exemption application.

Fuel your innovation with zero tax. Obtain the 80-IAC certificate to enjoy a 100% tax holiday on your profits for 3 consecutive years and reinvest in your growth.

Section 80-IAC of the Income Tax Act provides a significant incentive for young, innovative companies in India. A recognized startup can claim a 100% tax holiday on its profits for any three consecutive financial years out of its first ten years of incorporation. This benefit is designed to help startups survive the initial 'valley of death' and reinvest their earnings into research and development.

However, getting the DPIIT recognition is only the first step. To avail of the 80-IAC exemption, a startup must file a separate application with the Inter-Ministerial Board (IMB). The board evaluates whether the startup is working towards innovation, development, or improvement of products or services with a high potential for employment generation or wealth creation.

QuickTaxperts provides a specialized 80-IAC service. We help you articulate your startup's innovation, prepare the necessary business reports, and manage the technical application process to increase your chances of approval by the IMB.

Category: Taxation
Startup must be incorporated between April 1, 2016, and March 31, 2025.
Total turnover must not exceed ₹100 Crore in any financial year.
Exemption is available only on 'Profits and Gains' from the startup business.
Requires filing of the annual Income Tax return along with the 80-IAC claim.
100% tax exemption on profits for any 3 out of 10 years
Applicable to DPIIT recognized Private Limited and LLPs
Expert preparation of business plans and innovative pitches
Full management of the application on the Startup India portal

Eligibility for 80-IAC

Does your startup qualify?

DPIIT Recognized: You must first have a valid DPIIT Certificate of Recognition.
Company Structure: Only Private Limited Companies and LLPs are eligible (Firms are not).
Incorporation Date: Must have been incorporated after 01-04-2016.
Innovation: Must show significant innovation or scalability in the business model.

Documents required

Document requirements vary by entity type, state, premises, and authority. These are the usual groups we verify before submission.

80-IAC Checklist: DPIIT Recognition Certificate.; Memorandum and Articles of Association (MOA/AOA).; Audited Financial Statements for the previous 3 years (if applicable).; Detailed Business Plan highlighting innovation and scalability.; Pitch Deck or Presentation explaining the product/service.; Video link explaining the innovative nature of the startup.; Income Tax Returns filed for previous years.

Process and timeline

Innovation Audit: Evaluating your business model to see if it meets the IMB's 'Innovation' standards.
Report Preparation: Drafting a technical report on the product/service and its impact.
Online Application: Filing the 80-IAC application on the Startup India (National Single Window) portal.
IMB Review: Liaising with the department and responding to any queries raised by the board.
Certificate Grant: Obtaining the final 80-IAC exemption order from the Income Tax department.

Expert review

80-IAC Tax Exemption for Startups content is reviewed by QuickTaxperts Startup Team, Startup Compliance Experts.

Checklist-led review
Document pre-verification
Authority-specific next steps

Frequently asked questions

These quick answers cover common planning questions before you request a checklist or quote.

What is 80-IAC tax exemption?: It is a 3-year income tax holiday on profits for recognized startups under the Startup India program.
Is DPIIT recognition enough for tax exemption?: No, DPIIT recognition is for benefits like easier compliance; 80-IAC requires a separate approval from the IMB.
How many years of tax holiday can I get?: You get 100% tax exemption for any 3 consecutive years out of the first 10 years of your business.
What is the IMB?: The Inter-Ministerial Board (IMB) is the authority that reviews and approves 80-IAC tax exemption applications.
Can a Partnership Firm get 80-IAC?: No, only Private Limited Companies and LLPs are eligible for the 80-IAC tax holiday.
What is the turnover limit for 80-IAC?: The startup's total turnover should not have exceeded ₹100 Crores in any financial year since incorporation.
What counts as 'Innovation'?: The board looks for products or services that are new, significantly improved, or use advanced technology to solve a problem.
What if my application is rejected?: You can re-apply after addressing the concerns raised by the board or if there is a significant change in your business model.