Section 80-IAC Tax Exemption for Startups
Grant
About
The Section 80-IAC tax exemption provides eligible startups in India with significant financial relief through a 100% tax deduction on profits for three years, promoting innovation and growth during their formative years.
Benefits
- 🎉100% Deduction on ProfitsEligible startups can deduct 100% of profits for three consecutive years
- 🚫No Advance Tax RequiredStartups are exempt from paying advance tax
- 📉Reduction in Taxable IncomeHelps mitigate tax burden during initial stages
- 📝Simplified Application ProcessEasy online filing without government fees
Eligibility Criteria
- Startup must be a Company, LLP, or registered partnership firm
- Must have DPIIT Recognition
- Incorporated between April 1, 2016, and March 31, 2025
- Turnover must not exceed Rs. 100 crores
- Engaged in innovative products, services, or processes
Participation Commitments
- Must maintain DPIIT recognition
- Must provide accurate and complete documentation
- Must respond to any queries from DPIIT during application review
Target Sector
Startups engaged in innovative and scalable business models
Target Location
India
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