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🌟 Section 80-IAC

The Startup Tax Break That Can Supercharge Your Growth

If you're building a scalable, innovative business in India, Section 80-IAC exemption is the most powerful tax benefit available. Keep more profits during crucial early years, fuel faster growth, and attract savvy investors.

Get 80-IAC Exemption
Zero Income Tax 3 Years Tax Holiday Investor Magnet
🚀 Why Every Ambitious Startup Needs to Know 80-IAC

What is Section 80-IAC?

Section 80-IAC of the Income Tax Act, 1961, allows eligible "startup" companies to claim a 100% tax exemption on profits for any 3 consecutive years out of the first 10 years since incorporation. But there's a catch: Not every new business is a "startup" for this benefit. You must be recognized by DPIIT and meet strict innovation and structure criteria.

🌟 Strategic Edge

Section 80-IAC delivers unmatched advantages for ambitious startups seeking rapid growth and maximum capital retention.

  • Zero Income Tax: Save tax for 3 full years—reinvest in growth, team, tech, or marketing
  • Investor Magnet: VC/PE funds love startups with 80-IAC—more money goes to scale
  • Long Runway: 10 years to pick your best 3 years (not just first 3)
  • Brand Value: Recognition as "DPIIT Startup" builds trust and credibility

Real Impact

DPIIT has approved 187 startups for tax relief in 2025, with over 3,700 startups benefiting since inception.

⚠️ Operational Realities

Understanding compliance requirements and eligibility criteria ensures successful application and benefit retention.

  • DPIIT Recognition is Mandatory: No certificate = no exemption. Must be obtained first
  • Innovation Requirement: Must prove novelty, not just a generic trading or service business
  • Application Window: Claim within 10 years from incorporation, incorporated after April 1, 2016
  • Tax Audit: Detailed documentation, CA certification, and returns needed
  • Revocation Risk: Falsification or misuse leads to penalty & loss of benefit

Expert Support

Professional guidance ensures DPIIT recognition, tax application, and annual filings—zero hassle, maximum savings.

Who Can Avail 80-IAC?

Eligibility & Benefits

Meet these criteria to unlock India's most powerful startup tax benefit

Eligible Entity Types

Incorporated as Private Limited Company or LLP after 1 April 2016. Must be registered in India with valid CIN/LLPIN.

DPIIT Recognition

Holds a valid DPIIT Startup Certificate. This is mandatory—no certificate means no 80-IAC benefits.

Turnover Limit

Turnover does not exceed â‚ą100 crore in any year for which the benefit is claimed. Designed for growing startups.

Innovation Focus

Based on innovation, development, or improvement of products/processes/services, or has scalable model with high potential.

Original Entity

Not formed by splitting up, reconstruction, or transfer of old assets. Must be genuinely new business venture.

100% Tax Exemption

Complete income tax deduction on profits for 3 consecutive years within first 10 years. No advance tax required.

🗺️ Simple Process

Krystal7's 80-IAC Exemption Roadmap

How we make Section 80-IAC seamless for your startup

What We Need From You

  • Incorporation Certificate & MoA/AoA/LLP Agreement
  • Business Plan / Pitch Deck showing innovation
  • Proof of Innovation / Unique Business Model
  • Past 3 Years' ITRs & Financials (if any)
  • List of Directors/Partners, KYC, PAN, Aadhaar
  • Nature of Business/USP and Contact Details

What Krystal7 Delivers

  • DPIIT Startup Recognition Filing (if not done)
  • DPIIT Certificate Coordination and Follow-up
  • Documentation Preparation for 80-IAC Application
  • Detailed Eligibility Check & Compliance Advisory
  • Tax Exemption Application on Income Tax Portal
  • Liaison with Income Tax & DPIIT for approvals
  • Ongoing annual advisory for 80-IAC compliance
1

DPIIT Recognition

First secure DPIIT Startup Certificate through Startup India portal. This is mandatory prerequisite for 80-IAC eligibility.

2

Inter-Ministerial Board Application

Apply to IMB for 80-IAC certification through Income Tax portal with comprehensive documentation and innovation proof.

3

Approval & Certification

IMB reviews application within 120 days. Upon approval, receive 80-IAC certificate enabling tax exemption claims.

4

Tax Exemption Claims

File ITR claiming 100% exemption for chosen 3 consecutive years. Maintain compliance for benefit retention.

🚦 Take Action Now!

Don't Let India's Best Startup Tax Break Slip By

Krystal7 handles your DPIIT recognition, tax application, and annual filings—zero hassle, maximum savings. Get your profits where they belong: in your business!

100% Tax Free
3 Years Zero Tax

Growth Capital
Reinvest Savings

Expert Support
End-to-End Service

🚀 Book your 80-IAC Consultation Today—Let Krystal7 keep your profits where they belong!

Fill the form for expert consultation and complete Section 80-IAC support!

âť“ Must-Know FAQs

10 Must-Know FAQs on 80-IAC

Everything you need to know about Section 80-IAC tax exemption

No—you must have DPIIT recognition and meet all criteria. Tax exemption requires separate application to Inter-Ministerial Board with comprehensive documentation.

You are eligible (if you meet all other conditions). Both Private Limited Companies and LLPs can avail Section 80-IAC benefits.

Yes, anytime in the first 10 years; exemption applies for any 3 consecutive years. You can strategically choose your most profitable 3 years.

â‚ą100 crore in any year for which benefit is claimed. This ensures the benefit is targeted at growing startups, not established large companies.

No, as long as you retain DPIIT recognition and meet the criteria. Funding actually enhances your credibility and growth potential.

You lose eligibility—tax is recovered with penalty. This makes maintaining compliance and proper documentation critical for continued benefits.