Tax Exemption

Section 80-IAC Tax Exemption for Startups

Claim 100% tax deduction on profits for any 3 years out of 10. Expert filing for DPIIT-recognised startups — eligibility check, Form application and certification support.

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SAMPLE

Certificate of Recognition

DPIIT Startup India — sample recognition certificate

Illustrative sample. Your certificate is issued after DPIIT approval.

100% Tax deduction on profits
for eligible years
3 of 10 Years you can claim
the holiday
DPIIT Recognition required
before 80-IAC
Expert CA-led application
& follow-up
COMPREHENSIVE OVERVIEW

Section 80-IAC Tax Holiday for DPIIT Startups.

Eligible startups can deduct 100% of profits for any three consecutive assessment years out of ten from incorporation — after DPIIT recognition and separate 80-IAC certification.

CorporateMart helps DPIIT-recognised Private Limited companies, OPCs and LLPs apply for 80-IAC certification: eligibility assessment, documentation, application support and post-approval advisory so you claim the right years with clean compliance.

80-IAC is separate from DPIIT recognition. Recognition alone does not grant the tax holiday — you must obtain the 80-IAC certificate from DPIIT before claiming the deduction in your ITR.

KEY BENEFITS

Why 80-IAC Matters for Your Startup.

Substantial tax savings in growth years, subject to conditions under the Income-tax Act.

01

100% Profit Deduction

Claim full deduction of profits and gains from the eligible business for the chosen years.

02

Flexible 3-of-10 Window

Pick any three consecutive assessment years within ten years from incorporation.

03

Cash-Flow Advantage

Retain more capital during scale-up instead of paying full corporate tax on early profits.

04

Pairs with DPIIT Perks

Works alongside angel-tax relief, IPR fee rebates and GeM access for recognised startups.

05

Investor-Friendly

Clear tax incentive narrative for seed and early-stage fundraising conversations.

06

Expert-Led Filing

CA/CS support for eligibility, paperwork and application tracking through DPIIT.

ELIGIBILITY CRITERIA

Who Can Apply for 80-IAC Certification?

Criterion Requirement Remarks
DPIIT Recognition Must hold valid Startup India (DPIIT) recognition 80-IAC is not available without SRN
Entity Type Private Limited Company, OPC or LLP Partnership firm recognition ≠ automatic 80-IAC path
Age of Entity Within 10 years from incorporation Aligned with startup definition window
Turnover Does not exceed ₹100 crore in any year Checked against startup norms
Eligible Business Innovation-driven / scalable business as approved Must match DPIIT innovation criteria
Not a Split/Reconstruction Entity not formed by splitting an existing business DPIIT verification applies
DOCUMENTS REQUIRED

What You Typically Need to Apply.

1. DPIIT Recognition Certificate

Valid Startup Recognition Number (SRN) and recognition certificate.

2. Incorporation Documents

Certificate of Incorporation, MOA/AOA or LLP Agreement as applicable.

3. Entity PAN & Financials

PAN, and financial statements / ITRs as required for the application period.

4. Innovation / Business Note

Description of eligible business, novelty and scalability (aligned with DPIIT file).

5. Shareholding / Funding Details

Shareholding pattern and funding information where requested by the portal.

6. Other Supporting Proofs

Patents, awards, incubator letters or similar evidence that strengthens the case.

APPLICATION PROCESS

How We Help You Claim 80-IAC.

1. Eligibility Review

Confirm DPIIT recognition, entity type, age, turnover and business nature for 80-IAC.

2. Document Collation

Gather recognition certificate, incorporation papers, financials and innovation note.

3. Application Preparation

Prepare and file the 80-IAC application on the Startup India / DPIIT portal with supporting uploads.

4. Clarifications & Follow-up

Respond to any DPIIT queries until the certification decision is issued.

5. Claim in ITR

Advise on selecting the three eligible years and correctly reporting the deduction in the return.

QUICK COMPARISON

DPIIT Recognition vs 80-IAC Certification.

Aspect DPIIT Recognition 80-IAC Certificate
Purpose Startup status + multi-benefit access Income-tax profit deduction
Prerequisite Eligible entity + innovation Valid DPIIT recognition first
Tax holiday Does not grant 80-IAC by itself Required to claim 100% deduction
Angel tax relief ✓ Typically available Separate from 80-IAC
Validity window Up to 10 years from incorporation Claim any 3 consecutive years in that window
WHY CHOOSE US

Why Corporate Mart for 80-IAC?

01

Startup Tax Specialists

Advisors experienced in DPIIT recognition and 80-IAC certification pathways.

02

Eligibility First

We screen entity type, age, turnover and innovation fit before you invest time in filing.

03

End-to-End Support

From document checklist and portal filing to query responses and claim-year planning.

04

Linked Startup Services

Same team can handle DPIIT recognition, GeM, IPR rebates and ongoing compliance.

FAQ

Frequently Asked Questions

It allows eligible DPIIT-recognised startups to claim 100% deduction of profits from the eligible business for any three consecutive assessment years out of ten from incorporation, after obtaining 80-IAC certification.

No. Recognition is mandatory but not sufficient. You must separately obtain the 80-IAC certificate from DPIIT before claiming the deduction in your return.

Typically Private Limited Companies, OPCs and LLPs that are DPIIT-recognised and meet age, turnover and innovation conditions under the startup framework.

The three years must be consecutive assessment years within the ten-year period from incorporation. Planning which years to claim is important — we advise based on your profit trajectory.

Angel tax relief under Section 56(2)(viib) is linked to DPIIT recognition, not to the 80-IAC certificate itself. Both benefits are valuable but distinct.

Timelines vary with portal load and completeness of documents. After a complete application, decisions often come in a few weeks; clarifications can extend the process.

Obtain DPIIT recognition first. CorporateMart can assist with recognition and then with the 80-IAC application in sequence.

Yes. After certification we guide which years to elect and how the deduction should be reflected in the income-tax return, subject to your CA’s final filing.

MAXIMISE YOUR TAX HOLIDAY

Ready to Apply for 80-IAC Tax Exemption?

Book a free consultation. We will check DPIIT status, eligibility and the best path to certification and claim planning.

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