Overview
What is Tax Exemption Certificate (80IAC)?
Section 80IAC of the Income Tax Act provides a 100% tax deduction on profits and gains for DPIIT-recognised startups for any 3 consecutive assessment years out of the first 10 years from incorporation.
This exemption is applied by the Inter-Ministerial Board (IMB) of Certification, a body comprising DPIIT, Ministry of Finance, and MEITY. The 80IAC certificate is a separate application from DPIIT recognition and requires a more detailed review of the startup's innovative nature.
For a startup earning ₹50 lakh net profit annually, this exemption saves ₹15–17 lakh per year in corporate tax — potentially saving ₹45–50 lakh over 3 years. PrimeWealth Advisory prepares the complete 80IAC application including financial model and innovation case.
Income Tax Exemption3 Year Tax HolidayIMB ApprovalStartup BenefitCorporate Tax
Benefits
Key Benefits
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100% Tax Deduction — Full deduction on profits and gains for 3 chosen assessment years — zero corporate tax in those years
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Flexible Year Selection — Choose any 3 consecutive years within the first 10 years of incorporation
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Massive Cash Flow Benefit — Tax saved can be reinvested in business growth, hiring, or R&D
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Investor Attractiveness — 80IAC certification signals to investors that your startup is genuinely innovative and compliant
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Stack with Other Benefits — Can be combined with other Startup India benefits like patent fee rebate and self-certification
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Post-Exemption Flexibility — After the 3-year exemption period, you return to standard corporate tax structure
Who Can Apply
Eligibility Criteria
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Am I Eligible?
Check if your business qualifies for Tax Exemption Certificate (80IAC)
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Startup must have a valid DPIIT recognition certificate (prerequisite)
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Must be incorporated as a Private Limited Company or LLP
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Incorporated after April 1, 2016
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Annual turnover must not exceed ₹100 crore in any financial year
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Business must have been innovative — working on novel products, processes, or services
Documents Required
Required Documents
01
DPIIT Recognition Certificate (mandatory prerequisite)
02
Certificate of Incorporation
03
MOA/AOA (for Pvt Ltd) or LLP Agreement
04
Audited financial statements for all years since incorporation
05
Income Tax Returns (ITRs) for all years since incorporation
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Detailed innovation description and business model explanation
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Board resolution authorising the application
📌 We prepare the innovation description and financial case for the IMB, which significantly increases approval chances.
Process
Step-by-Step Process
1
DPIIT Recognition First
Ensure your startup has valid DPIIT recognition — this is a prerequisite for the 80IAC application.
2
Application Preparation
We prepare the complete 80IAC application on the Startup India portal with financial model and innovation case.
3
IMB Submission
Application submitted to the Inter-Ministerial Board of Certification on the official portal.
4
IMB Review
The IMB reviews the application — this process can take 2–6 months. Additional information may be requested.
5
Certificate Issuance
Upon approval, the 80IAC certificate is issued digitally — valid for the chosen 3 assessment years.
6
Tax Filing Guidance
We guide your CA/tax consultant on claiming the 80IAC deduction correctly in your Income Tax Returns.
FAQs
Frequently Asked Questions
Can I apply for 80IAC if my startup is already profitable?+
Yes. You can choose which 3 years to apply the exemption — so you can save the exemption for your most profitable years.
How long does IMB approval take?+
The IMB review typically takes 3–6 months. We follow up on the application progress regularly.
Can an LLP get 80IAC exemption?+
Yes. Both Private Limited Companies and LLPs with DPIIT recognition can apply for 80IAC.
Is 80IAC exemption on revenue or profit?+
The exemption is on profits and gains from business — not on total revenue. It is like a 100% deduction from your taxable income.
What happens after the 3-year exemption ends?+
After the exemption years, you pay corporate tax at normal rates. The business can continue to benefit from other Startup India schemes.
Can we re-apply if our first 80IAC application was rejected?+
Yes, you can reapply with additional supporting documents and a stronger innovation case. We help prepare a more compelling application.
Ready to Get Started?
Expert assistance — complete Tax Exemption Certificate (80IAC) from start to finish.
⚡ Fast Processing
✓ 97% Success Rate
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