Get expert help to apply for Section 80IAC tax exemption and enjoy a 100% income tax deduction for 3 years.
Save Taxes and Grow Faster with 80IAC Deduction
Handled by Experts | Trusted by 5000+ Startups
Section 80IAC of the Income Tax Act of 1961 exempts eligible Indian startups from paying taxes. Under this scheme, recognized startups can claim a 100% income tax credit on profits for any three consecutive years within the first ten years of incorporation.
To be eligible, the startup must be registered as a Private Limited Company or LLP and recognized by DPIIT (Department for Promotion of Industry and Internal Trade). This exemption aims to encourage innovative enterprises, reduce early-stage tax burdens, and promote entrepreneurship in India.
In order to qualify for the 80IAC tax exemption, a startup must fulfill the following eligibility requirements:
The entity needs to be registered as a Private Limited Company or Limited Liability Partnership (LLP) in India.
It has to be incorporated on or after April 1, 2016, but before April 1, 2026.
The startup must have received DPIIT designation as a qualified startup.
The company’s yearly turnover shall not exceed ₹100 crore in any previous financial year.
The company should be working to innovate, develop, or improve its goods or services, or it should have a scalable business model with the potential to create jobs or wealth.
A startup should not be founded by breaking up or rebuilding an existing business.
EbizFiling provides full support for 80IAC tax exemption, from DPIIT recognition to filing with the CBDT. We assure proper documentation, timely filing, and effective engagement with authorities, allowing your startup to receive relevant tax benefits without delay. With years of experience in startup compliance, we make the 80IAC process simple and dependable.
(All Inclusive)
(All Inclusive)
Certificate of Incorporation (from MCA)
PAN Card of the Startup
DPIIT Recognition Certificate
Memorandum of Association (MOA) / LLP Agreement
Profile of the Directors/Founders
Declaration from the Authorized Signatory
Eligible startups can deduct 100% of their profits for any three consecutive years within the first ten years of incorporation.
With no income tax liability during the exemption period, startups can reinvest more funds in their operations and growth.
Tax breaks in the early stages help firms lay a solid foundation and attain financial stability.
Investors are more likely to invest in recognized and tax-exempt startups, which increases fundraising opportunities.
The deduction benefits startups developing new technologies, novel business models, or development-led products.
80IAC approval demonstrates reliability and trustworthiness, which aids brand development and business expansion.
Get DPIIT Recognition
Gather Required Documents
Draft 80IAC Application
Submit on Startup India Portal
Receive CBDT Approval
Your Compliance Manager will assist in preparing declarations and submitting your application on the Startup India Portal for DPIIT recognition.
Once recognized, our experts will draft the 80IAC application, ensure document compliance, and file it with CBDT through the Startup portal.
We track the status and keep you updated. Upon approval, your 80IAC Tax Exemption certificate is issued and shared with you.
The 80IAC tax exemption allows eligible startups to claim a 100% income tax deduction on profits for any three consecutive years out of the first ten years of incorporation.
Key forms include MGT-7A, AOC-4, ADT-1, and the Income Tax Return (ITR-6).
Startups must be recognized by DPIIT, incorporated as a Private Limited Company or LLP after April 1, 2016, and have turnover not exceeding INR 100 crores in any financial year.
Yes, DPIIT (Department for Promotion of Industry and Internal Trade) recognition is mandatory before applying for the 80IAC deduction.
Yes, Limited Liability Partnerships (LLPs) that are DPIIT-recognized and meet other criteria can also claim the 80IAC tax benefit.
The exemption is available for three consecutive financial years within the first ten years of incorporation.
Yes, eligible startups can select any three consecutive years within the 10-year window to claim the deduction based on profitability.
The startup’s annual turnover should not exceed INR 100 crores in any of the financial years since incorporation.
Yes, as long as the startup meets all other eligibility criteria, foreign shareholding does not disqualify it from 80IAC exemption.
Documents include the Certificate of Incorporation, PAN, audited financials, board resolution, and DPIIT recognition certificate.
The process involves DPIIT recognition, compiling financials, applying online through the Income Tax portal, and submitting required documents to the CBDT.
Yes, once the application is submitted, the CBDT reviews the documents and grants approval for claiming the exemption.
There is no fixed deadline, but it is advisable to apply before the financial year in which you wish to claim the exemption.
Yes, but the exemption can only be claimed in years where the startup generates profits, as the benefit is a deduction on taxable income.
Yes, upon approval, the CBDT issues a certificate or confirmation which enables the startup to claim deductions while filing income tax returns.
Most sectors are eligible, but the startup must be working towards innovation, development, or improvement of products or services, or have a scalable business model.
No, the startup must wait until it receives approval from CBDT before claiming any deduction under Section 80IAC.
If you miss applying within the intended year, you can still apply later and claim the benefit in the upcoming profitable years within the 10-year period.
Yes, if the startup violates any conditions, such as exceeding turnover limits or changing business nature, the approval may be revoked.
The approval timeline can vary, but it typically takes 2 to 3 months after submission, depending on document verification and response time from authorities.
You can, but professional guidance ensures accurate documentation and better chances of approval, especially for new or early-stage startups.
Get expert help to apply for Section 80IAC tax exemption and enjoy a 100% income tax deduction for 3 years.
Save Taxes and Grow Faster with 80IAC Deduction
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