Startup India Income Tax Exemption under Section 80-IAC
100% deduction of profits and gains for any three consecutive financial years out of the first ten years since incorporation, subject to IMB certification.
Eligibility
- DPIIT-recognised startup incorporated as a Private Limited Company or LLP
- Incorporated on or after 1 April 2016 and before 1 April 2030 (window extended in Union Budget 2025-26)
- Turnover not exceeding Rs 100 crore in the year for which deduction is claimed
- Working towards innovation, development or improvement of products/processes/services, or a scalable business model with high potential for employment or wealth creation
- Not formed by splitting up or reconstruction of an existing business
- Must hold a certificate of eligible business from the Inter-Ministerial Board of Certification
How to apply
DPIIT-recognised startups apply for the tax exemption certificate via the Startup India portal (Form 80-IAC). Applications are evaluated by the Inter-Ministerial Board (IMB) of Certification; complete applications reviewed within 120 days under the revised framework.
Required documents
- DPIIT recognition certificate
- Certificate of incorporation
- Form 80-IAC declaration
- Financial statements and ITRs (as applicable)
Official sources
Verification notes
Verified via startupindia.gov.in and PIB. Incorporation window extended to before 1 April 2030 in Union Budget 2025-26. 3 consecutive years' 100% profit deduction within first 10 years; turnover cap Rs 100 crore. No fixed monetary cap on benefit, so maxValueInINR omitted. [AI-gathered from official sources on 2026-07-05; needs team review]