Startup Tax Exemption U/S 80IAC Online DPIIT Application Filing

Under the Startup India Scheme of the govt of India, start-ups may apply for tax exemption for three years within ten years of their establishment. We assist the start-up in obtaining tax exemption u/s 80IAC.

80IAC Tax Exemption Eligibility Criteria

The 80IAC Tax exemption criteria depends on factors like DPIIT Recognition, age of the startup, and its overall business turnover. Also, the innovation factor in its products or services is crucial for claiming the tax exemption. We have explained all the 80IAC tax exemption eligibility criterias below. Ensure that all these criterias are met before the application for 80IAC exemption is actually filed..

    Either a company or an LLP or registered partnership firm:

  • The startup must either be a Company or a Limited Liability Partnership or registered as a partnership firm. Startups established as any other business structure cannot claim this deduction.

    • Startup Recognition by the DPIIT:

  • The Department of Promotion of Industry and Internal Trade must recognize startups and the Startup has obtained DPIIT Recognition Certificate.

Section 80IAC Registration Process for Startups

  • 2024

  • Step-1: Documentation

    Section 80IAC registration process for Startups is completely application-based. So, the chances of its approval depends on the accuracy of documents submitted. At Setindiabiz, we provide full documentation assistance as part of our 80IAC registration service. You can get your documents drafted and verified by experts to avoid any hassle later.

  • Step-2: Login to the Startup India Portal

    After preparing all the necessary documents, the next step is to visit the official website of Startup India. Here, in the main menu, navigate to the “Recognition” option, and choose “Apply for Tax Exemptions” from the dropdown. You will be redirected to a page where you can access the 80IAC Application after signing into your account.

  • Step-3: Fill out the Application form

    Fill out the 80IAC form with necessary details like name, address, and business activity of the startup. The applicant must provide his name and contact information as well. Since the startup is recognized by the DPIIT, you must submit the DIPP number, incorporation and PAN details.

  • 2024

  • Step-4: Upload all necessary attachments

    After filling out all the details, upload the necessary documents. These include the MOA or LLP Deed, copy of annual accounts and ITR, video link, pitch deck and so on. A complete list of these documents is given in the section above.

Tax Benefits for Startups Under Section 80IAC

01. 100% Tax Deduction

Recognised Startups receive 100% tax deduction on profits. This eliminates any requirement of tax payment during the crucial initial phases.

02.Tax Exemption for Startups

Startup tax benefits under 80IAC extend for any 3 consecutive financial years after DPIIT recognition. The applicant can choose these 3 FYs at will..

03.Reduced Tax Burden

Startup Tax Deductions u/s 80-IAC helps cope up with the heavy tax burden. New businesses usually face this burden during the starting stages.

04.Get Incorporation Certificate

It typically takes 15- 25 days to form a Private limited company and get the incorporation certificate. Incorporation certification is a proof that company has been created. It also includes your CIN number.