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Startup Tax Exemption under Section 80IAC – Indian Taxpert

Apply Online for DPIIT Startup Tax Benefits

Under the Startup India Scheme, startups in India can claim tax exemption under Section 80IAC for up to three financial years within their first ten years of operations. At Indian Taxpert, we help startups obtain this exemption efficiently, accurately, and digitally, ensuring compliance with all government regulations.

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    Why Section 80IAC Mattersfor Startups

    New startups often face a heavy financial burden in their initial years, with limited revenue and high operational costs. Paying taxes from minimal profits can slow growth and reinvestment. To support budding businesses, the Government of India introduced Section 80IAC and Section 56 of the Income Tax Act, allowing eligible DPIIT-recognised startups to claim a three-year tax holiday.

    With Indian Taxpert, startups can seamlessly navigate the process to avail of these benefits.

    Timeline for 80IAC Tax Exemption Process

    Step 1: Startup Analysis

    Our experts review your eligibility based on submitted documents, questionnaires, pitch deck, and any supporting video presentation.

    Step 2: Document Drafting

    We prepare all necessary documents, including authorisation letters and justification statements for claiming 80IAC benefits.

    Step 3: Application Filing

    Your 80IAC application is filed online, authenticated with the DSC of the authorised representative.

    Step 4: Application Tracking

    We monitor your application, address any queries, and ensure smooth processing for approval.

    Documents Required

    Mandatory Documents:

    • Certificate of Incorporation / Registration

    • Business PAN

    • Applicant’s Aadhaar

    • Authorisation Letter

    • Active Mobile Number

    • Active Email Address

    Additional Documents

    (Based on Startup Stage):

    • DPIIT Recognition Certificate

    • MOA / LLP Deed

    • Financial Statements

    • Pitch Deck & Video

    • Aadhar of Authorised Signatory

    Eligibility for Tax Exemption under Section 80IAC

    1

    Eligible Business Structures

    • Private Limited Company
    • Limited Liability Partnership (LLP)
    • Registered Partnership Firm
    • Sole proprietorships or other structures cannot apply
    2

    DPIIT Recognition

    The startup must have recognition from the Department for Promotion of Industry and Internal Trade (DPIIT). Indian Taxpert can assist in obtaining your DPIIT Startup Recognition certificate quickly.

    3

    Incorporation After 1st April 2016

    Startups must be incorporated after 1st April 2016 and less than ten years old. FDI-funded entities are generally not eligible unless Indian promoters hold a majority stake.

    4

    New and Original Entity

    The startup should be newly formed and not a reconstruction or split of an existing business. All plant, machinery, and assets must be new and not previously used.

    5

    Turnover Limit

    The applicant startup’s turnover must not exceed ₹100 crore in the financial year for which the deduction is claimed.

    6

    Innovation & Employment Generation

    • Innovative products, services, or processes
    • Focus on financial growth
    • Wealth creation
    • Employment generation

    Step-by-Step Process to Claim 80IAC Tax Exemption

    1

    Documentation

    Ensure all forms and supporting documents are accurate. Indian Taxpert assists with drafting, verification, and filing.

    2

    Startup India Portal Login

    Access the Startup India portal and navigate to “Apply for Tax Exemption.”

    3

    Application Form Submission

    Fill in business details, PAN, DPIIT recognition number, and other required information.

    4

    Upload Documents

    Attach MOA/LLP Deed, annual accounts, ITR, pitch deck, video, and any other mandatory attachments.

    5

    Authorised Signatory Details

    Provide the name, designation, and signature of the authorised representative.

    6

    Submit Application

    Submit the completed application. The department processes it and communicates any clarifications if required.

    7

    Receive 80IAC Certificate

    Once approved, the tax exemption certificate under Section 80IAC is issued. This allows startups to claim tax benefits for three consecutive financial years.