Section 80-IAC of the Income Tax Act
Section 80-IAC lets an eligible startup claim a full tax deduction on its profits for a window of years early in its life. We confirm current eligibility, build the application, and see it through to certification.
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A profit-tax holiday for recognised startups
Section 80-IAC of the Income Tax Act, 1961 lets an eligible startup claim a full deduction on the profits from its business for a stretch of consecutive assessment years within its early life, chosen from within a window Parliament sets. It’s meant to let a young company reinvest what it earns instead of paying it out in tax while it’s still building traction.
The eligibility window — incorporation dates, turnover ceilings and the qualifying period — is set through the Finance Act and revised from time to time, so we confirm the current terms before building your application rather than working off an old cut-off.
- DPIIT recognition as a startup, held before applying
- Registered as a Private Limited Company or an LLP
- Turnover within the ceiling currently prescribed
- A genuinely innovative product, service, process or business model
- Certification from the Inter-Ministerial Board
Innovation-led startups planning to reinvest
Converting recognition into a tax benefit
Companies already recognised and looking to take the next step toward the tax deduction itself.
Building new products or processes
Startups genuinely developing something new, not just replicating an existing model.
Growth over payouts
Businesses that want tax savings to go straight back into the business rather than out as distributions.
Eligibility check to certification
Eligibility check
Confirming your incorporation date, turnover and structure against the current rules.
DPIIT recognition
Securing this first, since it’s the entry requirement for 80-IAC.
Application build
Business case, financials and supporting materials prepared for the Inter-Ministerial Board.
Documentation
Certificate of incorporation, MOA/LLP deed, financial statements and returns compiled and submitted.
Board liaison
Tracking the application through review and responding to any queries raised.
Year selection advice
Helping you choose which assessment years to claim the deduction in, once certified.
Four steps to certification
We confirm eligibility
Current incorporation, turnover and structure rules checked first.
We secure DPIIT recognition
If not already in place.
We build and file the application
Documentation and business case submitted to the Inter-Ministerial Board.
We advise on year selection
Once certified, we help you choose the right assessment years to claim.
Questions companies ask first.
Is DPIIT recognition enough to claim the 80-IAC deduction?
No. DPIIT recognition is a prerequisite, but the tax deduction itself needs separate certification from the Inter-Ministerial Board after a review of your application.
Can I choose which years to claim the deduction in?
Yes, eligible startups can choose their qualifying years from within the window the Act allows, rather than being locked into the first years of operation. We help you plan this around when profits are likely to peak.
Does every startup qualify, regardless of turnover?
No. Eligibility depends on staying under a turnover ceiling that the Finance Act sets and periodically revises, alongside the incorporation-date and structure conditions. We check the current figures before we build your case.
Tell us what you need.
A short call to understand where you stand and how we would run this for you. No obligation.
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