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80 IAC Tax Exemption in India

Q: What happens if my turnover crosses ₹100 crore after getting the exemption?

The ₹100 crore turnover limit applies for the year you claim the deduction. If your sales go over this limit in a later year within your ten-year period, you won't be able to get the 80-IAC exemption for that specific year. But if you've already used your three years, it won't affect those past benefits.

Q: Is there any government fee for the 80-IAC application?

No, there is generally no special government fee for applying for the 80-IAC exemption itself on the Startup India portal. However, you might pay for professional help, document prep, or audits.

Q: How long does the approval process for the IMB certificate take?

The approval time can differ. DPIIT aims to check complete applications within 120 days. But it can take longer if the IMB asks for more information. Being ready with your documents helps speed things up.

Q: Can a startup with foreign direct investment (FDI) apply for 80-IAC?

Yes, startups with foreign direct investment (FDI) can usually apply for 80-IAC. They just need to meet all other rules, like being formed in India as a Private Limited Company or LLP.

Q: What is the difference between Section 80-IAC and Angel Tax Exemption under Section 56?

Section 80-IAC gives a tax break on a startup's profits and gains. Angel Tax Exemption (under Section 56(2)(viib)) deals with the tax on extra money from share sales received by an unlisted company that is more than the shares' fair value. Both are separate benefits to help startups. DPIIT recognition is needed for both.

Q: Can I carry forward my business losses if I claim an 80-IAC deduction?

Yes, usually, DPIIT-recognized startups can carry forward their business losses, even if who owns the shares changes, if certain rules are met. This offers a lot of flexibility.

Q: What if my application gets rejected?

If your application is rejected, the IMB usually tells you why. You can fix these issues and apply again. It's often good to get expert help to understand the problems and make your next application stronger.

Q: Do I need to pay Advance Tax for the years I claim the 80-IAC exemption?

No, if you have successfully claimed the 80-IAC exemption, you generally don't need to pay Advance Tax for the years you are getting the 100% tax deduction on your profits. This further helps with managing your money.

Q: Is DPIIT recognition the same as getting the 80-IAC tax benefit?

No, DPIIT recognition is required before you can apply for the 80-IAC tax benefit. DPIIT recognition gives your startup general eligibility for many government plans. But to get the specific 80-IAC tax exemption, you must apply separately after DPIIT recognition and get approval from the Inter-Ministerial Board.

Section 80-IAC allows eligible startups to claim a 100% tax exemption for 3 years. RegisterKaro ensures smooth documentation, compliance, and approvals—apply now with expert assistance.

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MCA Certified Experts

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Trusted Reviews

2500+

Monthly Clients Onboardings

Serving Businesses Across India

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Phone Number*

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Frequently Asked Questions (FAQs)

Can I choose any three years for the tax exemption?

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Yes, you can choose any three consecutive years out of the first ten years from when your startup began. It's smart to pick the years when your startup expects to make good profits. This makes the tax benefit as big as possible.

What happens if my turnover crosses ₹100 crore after getting the exemption?

Is there any government fee for the 80-IAC application?

How long does the approval process for the IMB certificate take?

Can a startup with foreign direct investment (FDI) apply for 80-IAC?

What is the difference between Section 80-IAC and Angel Tax Exemption under Section 56?

Can I carry forward my business losses if I claim an 80-IAC deduction?

What if my application gets rejected?

Do I need to pay Advance Tax for the years I claim the 80-IAC exemption?

Is DPIIT recognition the same as getting the 80-IAC tax benefit?

Why Choose RegisterKaro to Secure the 80-IAC Exemption?

Navigating the 80-IAC tax exemption process can be complex, but RegisterKaro is here to simplify it. We specialize in helping startups secure these valuable benefits.

Expert Guidance on Compliance: The 80-IAC application process can be intricate. Our team has in-depth knowledge of the Income Tax Act and Startup India guidelines, ensuring your application meets all legal requirements.
Comprehensive Documentation Support: We assist in preparing all necessary documents, from financial records to legal certificates, ensuring everything is accurate and complete, reducing the risk of errors or rejections.
Pitch Deck and Presentation Expertise: Crafting a compelling pitch deck is essential. We work with you to showcase your startup’s innovation, making it clear to the Inter-Ministerial Board what sets you apart.
End-to-End Application Management: We handle the entire process, from securing DPIIT recognition to filing your 80-IAC application. Our team communicates with authorities and answers any queries, so you can focus on growing your business.
Maximized Approval Chances: With our extensive experience, we know exactly what the IMB looks for. We strategically present your application, maximizing the likelihood of first-time approval and saving you time and effort.

Why Choose RegisterKaro to Secure the 80-IAC Exemption?

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