Section 80-IAC Tax Exemption: How to Apply

Eligible startups can claim a 100% deduction on profits from their eligible business for three consecutive years. To get it, you need two things: DPIIT recognition, and a separate "certificate of eligible business" from the Inter-Ministerial Board of Certification (IMB). This guide covers who qualifies, how to apply to the IMB on the Startup India portal, the documents you'll need and how long it takes.

This guide is based on the official guidelines as of October 2026; always check the portal for the latest rules.

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80-IAC or Section 140? A note on the new tax law

The benefit has always been known as Section 80-IAC of the Income-tax Act, 1961. From 1 April 2026, the Income-tax Act, 2025 has replaced the old Act. The same benefit now sits in Section 140 of the Income-tax Act, 2025 ("Special provision in respect of specified business"). DPIIT's Tax Playbook for the Startup Ecosystem (May 2026) lists it as "Sec 80-IAC (1961) / Sec 140 (2025)".

The application on the Startup India portal is still called the 80-IAC form.

What you get

Section 140 allows a deduction equal to 100% of the profits and gains from your eligible business. You get it for three consecutive tax years, and you pick which three, out of the ten years starting from the year you were incorporated. They don't have to be your first three years.

DPIIT's playbook notes that MAT/AMT may still apply depending on your entity's structure and location, so plan with your tax adviser.

Who's eligible

You need all of the following:

DPIIT recognition as a Startup. If you don't have it yet, apply on NSWS first.
The right entity type. You must be a private limited company or an LLP. Partnership firms and cooperative societies can get DPIIT recognition, but they can't get this certificate. This comes from G.S.R. 108(E) (4 February 2026) and Section 140(16).
Incorporation date. You must be incorporated on or after 1 April 2016 but before 1 April 2030, under Section 140(16)(b)(i).
Turnover. Your total turnover must not exceed ₹300 crore in the tax year for which you claim the deduction, under Section 140(16)(b)(ii) as currently shown by the Income Tax Department.
Eligible business. Your business must work on innovation, development or improvement of products, processes or services, or be a scalable model with high potential for jobs or wealth creation.
Not formed from an existing business. You must not have been formed by splitting up or reconstructing an existing business, or by moving previously used plant or machinery into a new business. Section 140 has limited exceptions to this.

A conflict to know about. The 80-IAC application page on Startup India still says turnover must be "less than ₹100 crore", and its final declaration refers to ₹100 crore and the 1961 Act. That was the old limit. The current Section 140 text and DPIIT's 2026 tax playbook both say ₹300 crore. The ₹100 crore figure matches the old Section 80-IAC, which still governs years before the 2025 Act took effect on 1 April 2026. Read the declaration carefully before you sign, and check the current guidelines or ask your CA if your turnover is above ₹100 crore.

Before you apply

Have these ready:

Your DPIIT recognition must be up to date. The 80-IAC form pulls your name, incorporation details, address, PAN, sector, stage and employee count straight from your recognition form. If any of it has changed, update the recognition form first.
Your audited accounts. Section 140(8) says the deduction is only allowed if the accounts of the eligible business are audited before the specified date and the audit report is filed in the prescribed form. You need CA-certified statements for the application too.

Step-by-step: the 80-IAC application

You apply from your Startup India login. The form has five steps.

Step 1: Document Requirements

This page lists what you'll need. Read it and gather everything before you continue.

Step 2: Recognition Form Details Confirmation & 80-IAC Details

Confirm the details fetched from your recognition form.
Fill in the 80-IAC details:
- Existing/proposed activities: upload your MoA (or LLP deed) and any board resolution, as PDFs of up to 5 MB each. The portal asks for an MoA certified by the director or authorised signatory. If you have a SPICe MoA, convert it into a printable PDF before uploading. Don't upload the SPICe file as it is.
- Shareholding pattern: as per the MoA, and current. For each director or partner, give their name, DIN/DPIN, shareholding percentage, and whether they're a director or partner in other entities.
- Income tax returns: for each financial year.
- Startup video link.
- Pitch deck: a PDF of up to 5 MB.
- Website URL.
Complete the self-certification: that you weren't formed by reconstruction or splitting up of an existing business, and that the information has been audited by a Chartered Accountant. Add the authorised signatory's name, designation, place and date.

Step 3: 80-IAC Exemption Evaluation

Enter your annual accounts year by year (balance sheet, profit and loss account, revenue and profit or loss). You'll also add:

the CA's membership number for the reconstruction certificate
any credit rating from an accredited agency
your scalability evidence

Step 4: Broad Parameters

For each parameter, pick the option that fits your startup and attach proof:

Group	Parameters
Innovation	IPR status, awards, stage of your product or service, share of employees with an M.Tech or PhD
Wealth generation	External funding raised, revenue, profitability
Employment	Direct employment; share of employees who are women, persons with disabilities or from SC/ST categories; share based in non-metro cities

Step 5: Acknowledgement

Read the declaration, tick I Agree to Terms & Conditions, and click Save and Submit.

Documents checklist

Based on the portal's "Required Documents" list and Form-1 in G.S.R. 108(E):

Getting the pitch deck and video right

DPIIT's pitch deck guidelines ask you to cover:

your offering, plus one slide on your innovation or USP
real product photos and app or website screenshots
directors' education, experience and roles; shareholding and citizenship
revenue model, funding raised, and any government or incubator support
traction: paying customers, at least one contract, work order or MoU, and app store downloads if you have an app
awards, regulatory approvals (such as FSSAI or BIS) and your website

The video guidelines say:

Length: ideally 2 to 3 minutes, and no more than 5 minutes.
Show the product working. Show your actual product, prototype or proof of concept. A demo or walkthrough is compulsory for product or software startups.
Services firms: if you build software or apps for clients, walk through the actual products you've built for key clients.
Show traction, through reviews, testimonials or other user feedback.
What isn't accepted: a video made only from pitch deck slides, or someone reading a script without showing the product.
Hosting: host the video on YouTube, Vimeo or a similar platform. If you use Google Drive, make sure it isn't access-restricted.

What happens after you submit

The IMB reviews your supporting documents to decide whether you qualify as an eligible business. According to the Startup India FAQ:

Meetings: the IMB typically meets once a month, and takes cases in serial order.
Decision: it is sent to your startup's registered email address.
Tracking: the decisions of each IMB meeting are published on the IMB page. The recognition page also has an Application Status link.

The Board may ask for more documents or information. It then either grants the certificate or rejects the application with reasons. It can also revoke a certificate that was obtained using false information, and the certificate is then treated as never issued.

If you're approved, you claim the deduction when you file your income tax return, as the DPIIT playbook explains.

FAQ

Do I need DPIIT recognition first?

Yes. Only a DPIIT-recognised startup can apply to the IMB.

My startup is a registered partnership firm. Can I apply?

No. Partnership firms and cooperative societies can get DPIIT recognition, but the tax certificate is only for private limited companies and LLPs.

Do the three years have to be my first three?

No. You can pick any three consecutive tax years within the first ten years from incorporation.

Is there a deadline to apply?

There's no application deadline on the official pages. The limit is your incorporation date: you must be incorporated before 1 April 2030. You also need to claim within your ten-year window. Check the current guidelines for any changes.

What if I'm making a loss right now?

You can still apply, and the form has an "Incurring Loss" option under profitability. The deduction only helps in years when you have profits from the eligible business, so think about which three years to claim.

Can I get help preparing the application?

Yes. For help with DPIIT recognition or organising documents, see our services. Our scheme directory and subsidies list other benefits open to recognised startups.

Sources

Cover photo: Vitaly Gariev on Unsplash

How to Apply for the Section 80-IAC Startup Tax Exemption