Startup India Tax Exemption
Startups in India can save big on taxes through a special scheme called Startup India Tax Exemption under Section 80-IAC of the Income Tax Act. This scheme supports innovation and entrepreneurship by reducing the financial burden on eligible startups.
Contact Us
👉 Startup India Certificate
👉 Startup India Certificate
What is Startup India Tax Exemption)
Startup India Tax Exemption allows recognized startups to claim 100% income tax exemption on profits for any 3 consecutive years out of their first 10 years. This benefit is provided under Section 80IAC of the Income Tax Act, commonly known as the 80IAC exemption.
Eligibility Criteria for Section 80‑IAC
- Must be recognized by DPIIT (Department for Promotion of Industry and Internal Trade)
- Registered as a Private Limited Company or LLP
- Incorporated on or after April 1, 2016
- Annual turnover should be less than ₹100 crore in any previous financial year
- Working towards innovation, development or improvement of products/services
- Not formed by splitting or reconstructing an existing business
What is Section 80-IAC?
Section 80-IAC (or section 80iac of income tax act) is a special provision that helps startups reduce their taxable income. It allows eligible startups to deduct 100% of their profits, effectively making them tax-free for 3 years. This tax holiday boosts early-stage businesses by improving cash flow and encouraging growth.
Document Required For Startup India Tax Exemption)
Wondering which documents are required for income certificate or 80-IAC claim? Here’s the list:
- Certificate of Incorporation
- DPIIT Recognition Certificate
- PAN card of the company
- Audited financial statements
- Business pitch and product details
- Declaration and board resolution
These are essential for applying for tax exemption for startups.
Benefits of Section 80‑IAC for Startups
- 100% tax exemption on profits for 3 years
- Boosts liquidity and reinvestment potential
- Increases investor confidence
- Encourages innovation and risk-taking
- Strengthens India's startup ecosystem
How To Apply For Tax Exemption Certificate?
Steps to apply for 80 iac tax exemption:
- Register on the Startup India Portal and get DPIIT recognition
- Prepare necessary documents
- Apply through the Startup India website
- Submit details to the Inter-Ministerial Board (IMB)
- Await certificate approval
Once approved, your startup can enjoy the benefits of 80iac of income tax act.
Why Choose ElbowGrease for Tax Exemption Certificate? ​
If you’re looking to get your 80-IAC Tax Exemption Certificate quickly and hassle-free, here’s why you should choose me:
With deep expertise in Section 80-IAC of Income Tax Act, I help you unlock the full benefits of tax exemption for startupsfast and smoothly.
Q1: What is the time limit to claim 80-IAC exemption?
 You can claim it for 3 years within the first 10 years of incorporation.
Q2: Can LLPs apply under Section 80-IAC?
 Yes, both LLPs and Private Limited Companies can apply.
Q3: Is DPIIT recognition mandatory for 80-IAC?
 Yes, it is the first step to becoming eligible.
Q4: Which documents required for income certificate or tax exemption?
 Basic company documents, DPIIT certificate, PAN, financials, pitch deck, etc.
Q5: What is the benefit of 80iac exemption?
 It offers full tax exemption for 3 years, boosting early-stage cash flow.
