The Classic Partners LLP

Section 80 IAC Tax Exemption

Section 80-IAC tax exemption services for startups in India. We help DPIIT-recognised startups secure the Inter-Ministerial Board certificate and claim a 100% income-tax deduction on profits for three consecutive years within their first ten years.

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What is Section 80-IAC Tax Exemption?

Section 80-IAC of the Income Tax Act gives eligible startups a 100% deduction on profits from the eligible business for any three consecutive assessment years out of the first ten years. It is one of the most valuable startup tax incentives, letting profitable years be sheltered to free up capital for growth.

To qualify, a startup must be a DPIIT-recognised private limited company or LLP, incorporated within the eligible window (extended in Budget 2025 to 31 March 2030), with turnover within the prescribed limit, and must obtain a Certificate of Eligibility from the Inter-Ministerial Board. Recognition is handled through DPIIT tax exemption and Startup India, and it works alongside angel tax considerations for earlier years.

Who Should Claim the Section 80-IAC Exemption?

DPIIT-recognised startups that are or expect to be profitable.
Private limited companies and LLPs within the eligible window.
Innovative ventures with a scalable business model.
Startups with turnover within the prescribed limit.
Founders wanting to time a three-year tax holiday strategically.

Our Section 80-IAC Tax Exemption Services

Eligibility Check

Confirming you meet the Section 80-IAC conditions.

DPIIT Recognition

Securing the recognition required before applying.

IMB Application

Preparing and filing the Inter-Ministerial Board application.

Pitch & Documents

Drafting the innovation case and financial documents.

Holiday Planning

Advising which three years to claim the deduction.

Claim Support

Helping claim the deduction correctly in your return.

Why Choose The Classic Partners

Eligibility done right before you apply to the IMB.
Strong IMB applications presenting innovation clearly.
Smart holiday timing across your most profitable years.
End-to-end support from recognition to claim.

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Frequently Asked Questions

What is the Section 80-IAC tax exemption?

It is a startup tax incentive allowing a 100% deduction on profits from the eligible business for any three consecutive assessment years out of the first ten years, available to eligible DPIIT-recognised startups.

Who is eligible for Section 80-IAC?

An eligible startup must be a DPIIT-recognised private limited company or LLP, incorporated within the prescribed window, with turnover within the limit, engaged in an innovative or scalable business and not formed by reconstruction.

Until when can a startup be incorporated to qualify?

The incorporation window was extended in Budget 2025, with eligible startups now able to be incorporated up to 31 March 2030, subject to the other conditions.

Do I need an Inter-Ministerial Board certificate?

Yes. Beyond DPIIT recognition, a separate Certificate of Eligibility from the Inter-Ministerial Board is required to claim the Section 80-IAC deduction.

Which three years can I claim the deduction for?

You can claim 100% deduction for any three consecutive assessment years within the first ten years from incorporation, so it is best to choose your most profitable consecutive years.

Does the deduction cover all my income?

No. The deduction applies to profits from the eligible business only, not to unrelated income such as certain other-source income, so the computation must separate them.

Want a three-year tax holiday?

Get DPIIT recognition and the IMB certificate, and claim the Section 80-IAC deduction.