DPIIT Tax Exemption (Startup Tax Exemption under Section 80 IAC)

N D Savla & Associates

If you are building a startup, tax should not kill your early growth

Most startups don’t struggle because of ideas. They struggle because cash is tight in the first few years. Paying full tax when you are still stabilizing can slow hiring, product building, and expansion.

Here’s the practical side. If your startup is recognized by DPIIT, you may be eligible for 100% tax exemption on profits for 3 consecutive years under Section 80 IAC of the Income Tax Act.

But getting this right is not just about registration. The eligibility conditions, documentation, and application process need to be handled properly.

That’s where N D Savlaa & Associates helps founders apply, structure, and secure DPIIT tax exemption without compliance mistakes.

What is DPIIT Tax Exemption?

DPIIT (Department for Promotion of Industry and Internal Trade) gives eligible startups recognition.
After recognition, startups can apply for tax exemption under Section 80 IAC, which allows:

• 100% income tax exemption on profits
• For any 3 consecutive years out of first 10 years of incorporation

This is a major benefit for early-stage profitable startups.

Who is Eligible for DPIIT Tax Exemption?

Your startup typically must:

• Be registered as Private Limited Company or LLP

• Be incorporated within eligible period as per law

• Have DPIIT Startup Recognition

• Have turnover within prescribed limits (as per latest rules)

• Be working on innovation, improvement, or scalable business model

• Not be formed by splitting or reconstruction of existing business

Eligibility needs proper evaluation before applying.

Our DPIIT Tax Exemption Services

DPIIT Recognition Support

If you don’t have DPIIT recognition yet, we help prepare documentation and application.

Eligibility Review for Tax Exemption

We check:

• Shareholding structure

• Business model eligibility

• Financial projections

• Compliance history

This avoids rejection risk.

Section 80 IAC Application Filing

We prepare:

• Financial workings

• Business justification notes

• Supporting documentation

• Application submission

Query Handling with Authorities

Most applications receive queries.
We prepare structured replies and additional documents.

Post Approval Compliance Support

We help ensure:

• Correct tax filings

• Proper claim of exemption

• Future compliance safety

Common Situations Where This Helps

Startup became profitable earlier than expected
Instead of paying full tax, exemption can protect early profits.

Startup raised funding and now expects profit in coming years
Planning exemption timing becomes critical.

Founder heard about DPIIT but is unsure about actual tax benefit
We evaluate and give realistic eligibility view.

Why Founders Choose N D Savlaa & Associates

Startup tax exemption is not just form filing. It requires story + numbers + compliance alignment.

What you get:

• Honest eligibility assessment

• Strong documentation and justification

• Founder-friendly explanations

• Long term compliance planning

• Coordination with your legal and finance teams

Simple goal. Help you save tax legally without future notice risk.

Our Working Approach

Step 1 – Understand startup model and funding structure
Step 2 – Check DPIIT eligibility and tax exemption eligibility
Step 3 – Prepare application and documentation
Step 4 – Handle authority queries
Step 5 – Support exemption claim in tax filings

When Should You Apply?

Ideally before you start generating significant profits.
But even if you are already profitable, planning is still possible.