Section 80IAC - Tax Deduction for Startups

Overview

Section 80IAC of the Income Tax Act offers a tax holiday to eligible startups recognized by DPIIT. It allows for a 100% tax deduction on profits for 3 consecutive years out of the first 10 years.

This tax deduction is a huge benefit for startups, allowing them to retain more of their earnings and reinvest in their business to fuel growth.

Our service assists startups with the application for this tax holiday, ensuring all necessary documentation is in place and compliance is maintained.

Eligibility Criteria

DPIIT-Recognized Startups

  • Incorporated after April 1, 2016
  • Recognized by DPIIT
  • Engaged in innovation, development, or improvement of products/services

Documents Required

1.DPIIT Recognition Certificate
2.Incorporation Certificate
3.Audited Financial Statements
4.Income Tax Return (ITR)

Our Process

1

Eligibility Verification

Ensuring the startup is DPIIT recognized and meets the eligibility criteria

1-2 days
2

Tax Filing

Filing the Income Tax Return (ITR) for claiming the deduction

1 day
3

Compliance Check

Ensuring all documentation is aligned with eligibility criteria

1-2 days

Frequently Asked Questions

The tax holiday lasts for 3 consecutive years out of the first 10 years of the startup's existence.