80-IAC Tax Exemption: How Startups Get 3 Years of Tax-Free Profit

What 80-IAC gives you

Section 80-IAC lets an eligible startup claim a 100% deduction on profits for any three consecutive years out of its first ten years. For a profitable early company, that can mean a meaningful runway extension.

Who qualifies

  • Incorporated as a Pvt Ltd or LLP between the eligible dates notified by government
  • DPIIT-recognised startup
  • Turnover under ₹100 crore in the relevant financial year
  • Working towards innovation, development or improvement of products/processes/services

The application path

  • Get DPIIT recognition first (prerequisite)
  • Apply for 80-IAC on the Startup India portal with pitch deck, financials and incorporation docs
  • An inter-ministerial board reviews and certifies eligible startups

Common reasons applications fail

Vague innovation claims, missing financials, or a pitch that reads like a services business rather than a scalable product. Frame the innovation clearly and back it with traction.

80-IAC only helps once you are profitable — but apply early. The certificate is what unlocks the benefit when profits arrive.

Need help putting this into action? Book a free 15-minute call with a Vaishnav Catalyst specialist.

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