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.
Startups incorporated before March 31, 2030, can claim a 100% tax holiday for three consecutive years within their first decade.
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.
We also provide services like Startup Advisory, Bhaskar ID Registration, DPIIT Recognition for Startups, Startup India Seed Scheme, and many more. For detailed information, call our compliance manager on 09643203209 or email info@ebizfiling.com.
(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
Section 80IAC of the Income Tax Act provides eligible startups with a significant tax benefit by allowing a 100% deduction on profits for any three consecutive financial years within the first ten years of incorporation. This exemption helps startups reduce their tax burden during their growth phase and reinvest profits into scaling their business operations.
To qualify for the 80IAC tax exemption, a startup must meet specific conditions laid down under the Income Tax Act. The entity must be recognized by DPIIT and should be incorporated as a Private Limited Company or LLP on or after April 1, 2016. Additionally, the annual turnover of the startup should not exceed INR 100 crores in any financial year since incorporation. The business must also be engaged in innovation, development, improvement of products or services, or operate with a scalable business model having high potential for employment generation or wealth creation.
Yes, DPIIT recognition is mandatory for claiming the 80IAC tax exemption. Without obtaining recognition from the Department for Promotion of Industry and Internal Trade, startups cannot proceed with the application for tax benefits. DPIIT recognition serves as the primary validation that the business qualifies as a startup under government norms.
Yes, startups in India can avail tax exemptions under Section 80IAC, provided they meet all eligibility criteria. This provision allows startups to claim a complete tax deduction on profits for selected years, helping them conserve capital and improve cash flow during their early growth stages.
80IAC exempted startups are those that have successfully obtained DPIIT recognition and received approval from the Central Board of Direct Taxes. These startups meet all eligibility conditions and are legally permitted to claim tax deductions under Section 80IAC while filing their income tax returns.
To claim the 80IAC deduction, a startup must first obtain DPIIT recognition and then prepare all required financial and legal documents. After that, the application is submitted through the Income Tax portal to the Central Board of Direct Taxes for approval. Once approved, the startup can claim the deduction while filing its income tax return using the appropriate form. With expert assistance from Ebizfiling, startups can ensure accurate filing and faster approval.
The quantum of exemption under Section 80IAC allows startups to claim a 100% deduction on their profits for any three consecutive financial years within the first ten years of incorporation. There is no specific monetary cap on the exemption amount, but the startup must continue to meet turnover and eligibility conditions.
Yes, Limited Liability Partnerships are also eligible to claim the 80IAC tax exemption, provided they are recognized by DPIIT and meet all other prescribed conditions. This makes LLP a suitable structure for startups looking to avail tax benefits along with operational flexibility.
To remain eligible for the 80IAC exemption, the startup’s annual turnover must not exceed INR 100 crores in any financial year since incorporation. If the turnover crosses this threshold, the startup may lose eligibility for the tax benefit.
Yes, Minimum Alternate Tax may still apply to startups even if they claim a deduction under Section 80IAC. This means that while the income tax liability may be reduced, startups may still need to pay MAT as per applicable provisions.
Section 80IA mainly applies to infrastructure-related businesses, while Section 80IAC specifically focuses on startups engaged in innovation, development, or scalable business models. Most modern startups, especially in technology and service sectors, fall under Section 80IAC rather than Section 80IA.
Yes, eligible startups have the flexibility to choose any three consecutive financial years within the ten-year period from incorporation to claim the deduction. This allows startups to plan their tax benefits strategically during their most profitable years.
The approval process for Section 80IAC typically takes around two to three months, depending on the accuracy of documents and response time from authorities. With professional assistance from Ebizfiling, startups can minimize delays and ensure smooth processing.
To apply for the 80IAC tax exemption, startups need to submit a set of essential documents to support their eligibility and financial position. These include the Certificate of Incorporation, PAN of the company or LLP, DPIIT Recognition Certificate, audited financial statements, and a board resolution authorizing the application. Additionally, the startup must provide its Income Tax Returns and any other supporting documents required during the application process. Proper documentation plays a crucial role in ensuring faster approval and avoiding rejection.
Yes, a startup can lose its 80IAC approval if it fails to comply with the prescribed conditions after receiving the benefit. This may happen if the startup exceeds the turnover limit of INR 100 crores, changes its core business activity away from innovation or scalability, or fails to maintain proper compliance with tax and regulatory requirements. Therefore, it is important for startups to regularly monitor their eligibility and ensure ongoing compliance to retain the benefits under Section 80IAC.
Yes, startups can apply for the 80IAC exemption on their own, but the process involves detailed documentation, regulatory checks, and coordination with authorities. Seeking professional support from Ebizfiling can simplify the process, improve accuracy, and increase the chances of successful approval without delays.
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
Ebizfilling team explained every details and supported in compliance fillings. Mr. Rakesh B has been very helpful in getting things done swiftly and efficiently.
The impressive service, combined with friendly and efficient customer support, made my experience seamless. The team's professionalism and attention to detail were remarkable. Quick, reliable, and friendly service—exactly what I needed.
Good service provided by ur staff.
