Section 80-IAC — Three Years, Zero Income Tax.
Beyond DPIIT recognition, a separate application to the Inter-Ministerial Board can secure a three-year income tax holiday for an eligible startup. We handle that application.
Contact UsSection 80-IAC of the Income Tax Act allows an eligible startup to claim a 100% deduction of profits and gains for any three consecutive assessment years out of its first ten years from incorporation — effectively a three-year income tax holiday on business profits, chosen at the startup's discretion within that ten-year window based on when profitability is highest.
Eligibility requires the entity to be a DPIIT-recognised startup, incorporated as a private limited company or LLP (not a partnership or proprietorship) on or after a specified date, with turnover not exceeding the prescribed limit in any relevant year, and — critically — approval from the Inter-Ministerial Board (IMB) constituted specifically to evaluate 80-IAC applications, which is a distinct step from DPIIT recognition itself.
The IMB evaluates the application against innovation and scalability criteria similar to, but assessed separately from, the DPIIT recognition process — meaning a DPIIT-recognised startup isn't automatically entitled to the 80-IAC benefit and must make its own case to the Board. We prepare and file this application, and advise on choosing the optimal three-year window once approved.
Our 80-IAC Services
80-IAC Eligibility Assessment
Checking incorporation date, entity type, turnover, and DPIIT recognition status against Section 80-IAC eligibility conditions.
Inter-Ministerial Board Application
Preparing and filing the application to the IMB for 80-IAC tax exemption approval.
Business Innovation Write-Up
Drafting the write-up demonstrating innovation, scalability, and employment/wealth-creation potential the IMB evaluates.
Financial Documentation Compilation
Compiling financial statements and projections supporting the application.
Query Response to IMB
Responding to any clarification queries the Inter-Ministerial Board raises during evaluation.
Optimal Exemption Window Advisory
Advising on which three consecutive years within the ten-year window to claim the exemption for maximum benefit.
Post-Approval Compliance
Guidance on maintaining eligibility conditions through the exemption period and beyond.
MAT/AMT Interplay Advisory
Advisory on how Minimum Alternate Tax or Alternate Minimum Tax provisions interact with the 80-IAC exemption claim.
Our Process
Eligibility Confirmation
We confirm the entity type, incorporation date, turnover, and existing DPIIT recognition meet 80-IAC conditions.
Application Preparation
The IMB application is prepared with the required innovation write-up and financial documentation.
IMB Filing
The application is filed with the Inter-Ministerial Board for evaluation.
Query Resolution
Any clarification queries from the Board are addressed to keep the application moving toward approval.
Approval & Window Selection
On approval, we advise on the optimal three-year window to claim the exemption within the ten-year eligibility period.
Why It Matters
Frequently Asked Questions
Ready to apply for the Section 80-IAC tax holiday?
We'll check your eligibility, draft the IMB application, and advise on the best three-year window to claim it.
