Section 80-IAC — Income Tax Holiday
100% tax deduction on profits for 3 consecutive years out of first 10. Approval rate ~1.8% — IMB scrutiny is rigorous. Time the 3-year window strategically.
Quick facts
- Ministry / Agency
- CBDT / Inter-Ministerial Board
- Funding
- 100% tax deduction, 3 of first 10 FYs
- Stage
- early-revenue, growth, mature
- Sector
- Any sector
- Equity dilution
- none
- DPIIT recognition required
- Yes
- NRI / OCI eligibility
- Yes — NRI and OCI founders are eligible to apply.
Who is eligible
DPIIT-recognised, Pvt Ltd or LLP only (not Partnership), incorporated 1 Apr 2016 – 1 Apr 2030
How to apply
Section 80-IAC is administered by CBDT / Inter-Ministerial Board. Applications are submitted through the official portal — there are no application fees and you do not need to go through third-party intermediaries. Before applying, complete DPIIT Startup India Recognition — it is a prerequisite for this scheme.
Apply on the official portalRelated schemes
Other schemes that often pair with Section 80-IAC or apply to a similar profile.
DPIIT Startup India Recognition
The gateway credential. Itself free, but unlocks 80-IAC tax holiday, IP fee rebates, labour self-cert, GeM access, SISFS eligibility. First filing post-incorporation.
SIPP — Startup IP Protection
80% rebate on patent fees + 50% on trademarks + expedited examination (4-6× faster). Free facilitators.
Fund of Funds for Startups (FFS) 1.0 & 2.0
FFS doesn't fund startups directly — backs SEBI AIFs which deploy 2× SIDBI commitment into DPIIT startups. FFS 2.0 (Apr 2026): another ₹10,000 Cr with Deep Tech carve-out.
Startup India Seed Fund Scheme
Up to ₹20 L grant for PoC/prototype + up to ₹50 L convertible/debt for market entry. Apply to up to 3 incubators. ₹605+ Cr deployed to 3,400+ startups.
Frequently asked questions
Who is eligible for Section 80-IAC?+
DPIIT-recognised, Pvt Ltd or LLP only (not Partnership), incorporated 1 Apr 2016 – 1 Apr 2030
What is the funding amount under Section 80-IAC?+
100% tax deduction, 3 of first 10 FYs. 100% tax deduction, 3 of first 10 FYs
Can NRI or OCI founders apply for Section 80-IAC?+
Yes — NRI and OCI founders are eligible to apply.
Does Section 80-IAC require DPIIT recognition?+
Yes — DPIIT recognition is mandatory before applying for Section 80-IAC.
How do I apply for Section 80-IAC?+
Apply through the official portal at startupindia.gov.in. The scheme is administered by CBDT / Inter-Ministerial Board.
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