{"id":38749,"date":"2025-06-05T14:32:58","date_gmt":"2025-06-05T09:02:58","guid":{"rendered":"https:\/\/www.kanakkupillai.com\/learn\/?p=38749"},"modified":"2025-06-05T14:32:58","modified_gmt":"2025-06-05T09:02:58","slug":"how-to-apply-for-section-80iac-exemption","status":"publish","type":"post","link":"https:\/\/www.kanakkupillai.com\/learn\/how-to-apply-for-section-80iac-exemption\/","title":{"rendered":"How to Apply for Section 80IAC Exemption?"},"content":{"rendered":"

Starting a new business is an exciting and joyful journey, but it comes with many financial responsibilities and challenges. To encourage the growth of innovation and help new startups grow, the Indian government offers various opportunities for tax benefits. One such benefit is the Section 80IAC exemption<\/a> under the Income Tax Act, 1961. This provision allows eligible startups to claim a 100% income tax exemption for 3 consecutive financial years out of the first 10 years since incorporation.<\/p>\n

In this article, we will discuss in simple terms what Section 80IAC is, who can apply, and how to apply for the exemption step-by-step.<\/p>\n

What is Section 80IAC?<\/h2>\n

Section 80IAC of the Income Tax Act provides a tax holiday to eligible startups. This means that if your startup qualifies, you don\u2019t have to pay income tax on profits for three consecutive years, which can help you reinvest that money into your business.<\/p>\n

Who Can Apply? (Eligibility Criteria)<\/h2>\n

To apply for the 80IAC exemption, your startup must meet certain conditions:<\/p>\n

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  1. Type of Entity<\/strong>: Must be a Private Limited Company<\/a> or a Limited Liability Partnership<\/a> (LLP).<\/li>\n
  2. Incorporation Period<\/strong>: Should be incorporated between April 1, 2016, and March 31, 2025.<\/li>\n
  3. Turnover Limit<\/strong>: The startup\u2019s turnover should not exceed the limit of \u20b9100 crores in any financial year since incorporation.<\/li>\n
  4. Innovation or Improvement<\/strong>: The startup must be working on innovative products\/services, development, or improving existing services. It should have the potential to generate employment or wealth.<\/li>\n
  5. Approval from DPIIT<\/strong>: The startup must be recognized by the Department for Promotion of Industry and Internal Trade (DPIIT).<\/li>\n
  6. Not Formed by Splitting<\/strong>: The startup should not be formed by the process of splitting up or reconstructing an existing business.<\/li>\n<\/ol>\n

    Benefits of 80IAC Exemption<\/h2>\n