Section 80 IAC Tax Exemption for Startups.
Early-stage startups need every advantage they can get. The government offers a powerful incentive under Section 80 IAC of the Income Tax Act that allows eligible startups to claim a 100 percent tax exemption on profits for three consecutive years.
Many founders have heard about 80 IAC, but the eligibility rules and application process often feel confusing.
Let’s break it down.
Our role is to guide you from checking eligibility to filing the online application and maintaining post-approval compliance.
What Is Section 80 IAC Exemption?
Section 80 IAC gives DPIIT-recognized startups the option to pay zero income tax on business profits for any three years out of their first ten years of operation, subject to approval.
This exemption improves cash retention, strengthens financial statements, and makes the startup more attractive to investors.
Eligibility Criteria-
To apply for 80 IAC exemption, a startup must meet key conditions:
The company must be incorporated as a Private Limited Company or LLP
It should hold valid DPIIT Startup Recognition
The entity must not be formed by splitting up or reconstructing an existing business
Turnover should be within the limit prescribed for startups
The business should be working on innovation, development, or scalable commercial model
Accounts must be properly maintained and audited
The application should be filed within the eligible startup period
We review your incorporation documents, business profile, and financials to confirm whether you qualify.
Services Offered
Under our 80 IAC Tax Exemption Services, we provide:
Advisory on 80 IAC provisions and benefits
Assistance in obtaining DPIIT recognition
Preparation of business activity notes
Drafting declarations and resolutions
Filing online application for 80 IAC approval
Coordination with Inter-Ministerial Board
Preparation of submissions for queries
Guidance on bookkeeping for exemption years
Post-approval compliance support
Notice reply assistance
You get complete support from one of the experienced chartered accountant firms in Mumbai handling startup taxation.
Declaration and Documentation
Correct declarations make or break the approval.
We assist in preparing:
Board resolutions for applying to the IMB
Statements confirming innovation and genuine business activity
Details of promoters and key management
Audited financial statements
Income tax filings and compliance history
Business projections and plans
Bankers and investors prefer files prepared professionally. We make sure everything is in place.
Application Process
Let’s break down the steps.
Startup Recognition
Secure DPIIT recognition certificate
Preparation Stage
Drafting of declarations
Collation of required attachments
Online Filing
Submission of application to the Inter-Ministerial Board through the government portal
Coordination
Handling departmental and IMB queries
Preparing clarifications
Approval
Final 80 IAC exemption certificate
Our engagement continues until you receive formal approval.
How Startups Benefit
After 80 IAC approval:
profits remain tax-free for selected years
cash flow improves
funds for growth increase
financial statements look stronger
compliance risks reduce
What this really means is—more runway for your startup.
Why Choose N D Savla & Associates?
Founders check many websites of chartered accountant firms in Mumbai before selecting an advisor.
Clients choose us because:
Established Startup Expertise – regular handling of DPIIT and 80 IAC applications
Practical Understanding – what the IMB expects
Accurate Presentation – realistic business notes
Direct Coordination – with authorities and auditors
End-to-End Support – from recognition to final sanction
Post-Approval Guidance – continued compliance care
You get advisors who stay involved, not just agents who file forms.
Frequently Asked Questions
1. What is 80 IAC exemption?
It is income tax exemption on profits for eligible DPIIT-recognized startups for three consecutive years.
2. Is DPIIT recognition mandatory?
Yes. Only recognized startups can apply.
3. Which entities can apply?
Private limited companies and LLPs.
4. Can LLP claim this exemption?
Yes, after DPIIT recognition.
5. When should a startup apply?
As soon as it becomes eligible and maintains audited accounts.
6. Is audit compulsory for exemption years?
Yes. Properly audited accounts are required.
7. How long does approval take?
Normally a few weeks depending on query resolution.
8. What happens after approval?
The startup can select any three eligible years and claim 100 percent tax relief on profits.
Ready to Apply?
Section 80 IAC exemption is a major advantage for genuine startups.
Contact N D Savla & Associates today to check eligibility and complete your 80 IAC tax exemption process confidently.
