Section 80-IAC
Tax Holiday for Eligible Recognized Startups
Section 80-IAC of the Income Tax Act allows eligible DPIIT-recognized startups to claim a 100% tax deduction on profits for any 3 consecutive years out of the first 10 years — significantly reducing tax outflow during critical growth years.
What You Need to Know
What it is: A tax exemption provision under the Income Tax Act, 1961, allowing eligible DPIIT-recognized startups to claim 100% profit deduction for 3 consecutive years within the first 10 years from incorporation, subject to approval by the Inter-Ministerial Board (IMB).
Why it matters: Significant tax savings during the early growth years allow startups to reinvest capital back into product development, hiring, and market expansion rather than paying corporate tax.
What You Get with Growthora
Eligibility Criteria
Documents Required
Checklist prepared and verified prior to audit submission:
Certification & Audit Process
Startup India Recognition
Confirm DPIIT recognition is in place (prerequisite).
Eligibility Assessment
Verify incorporation type, year, and turnover eligibility.
Financial Document Preparation
Organize audited financials, ITRs, and business documentation.
IMB Application Preparation
Prepare a complete, accurate application for the Inter-Ministerial Board.
Application Filing
Submit the 80-IAC application through the Startup India portal.
IMB Review
IMB evaluates the application and innovation credentials.
Approval & Tax Planning
Upon approval, plan financials to maximise tax exemption for eligible years.
Frequently Asked Questions
Let's Find The Best Funding Solution For Your Business
Answer a few quick questions to check your eligibility. ✨
Business Loan
Debt Funding
- Up to ₹10 Crore
- Fast Approval
- Low Interest Rates
Government Grant
Non-Refundable
- Non-Refundable Grant
- Central & State Schemes
- For Startup & MSME
Startup Funding
Equity / Seed
- Seed Fund Support
- Angel Investor Connect
Business Growth Support
Consulting
- Expansion Planning
- Digital Marketing