Overview
Eligible DPIIT-recognised startups can claim a deduction of 100% of profits for any 3 consecutive years out of their first 10 years.
Why it matters for founders
Use this scheme together with other Startup India and MSME benefits. Our community experts can help you prepare documents and a strong application.
Key benefits
100% deduction on profits for any 3 consecutive assessment years out of 10
Improves cash flow in the early profitable years
Can be combined with other Startup India benefits such as self-certification under labour laws
Eligibility
- DPIIT-recognised startup incorporated as a private limited company or LLP
- Incorporated within the window notified by the government
- Turnover has not exceeded ₹100 crore in any financial year
- Not formed by splitting up or reconstructing an existing business
How to apply
- 1
Get DPIIT recognition on the Startup India portal
- 2
Apply for the tax exemption certificate (Form 1) on the Startup India portal
- 3
On approval by the Inter-Ministerial Board, claim the deduction in your income-tax return
Documents required
- DPIIT recognition certificate
- Memorandum / articles or LLP agreement
- Annual accounts and IT returns for the last 3 years (if applicable)
- Write-up on innovation and scalability
Frequently asked questions
Who can apply for Tax Exemption for Startups (Section 80-IAC)?
Where do I apply?
Is the information on this page official?
Similar schemes
Startup India Seed Fund Scheme
Early-stage funding for proof of concept, prototype development, product trials, market entry and commercialisation — routed through selected incubators.
Pradhan Mantri Mudra Yojana
Collateral-free loans for non-farm micro and small enterprises through banks, NBFCs and MFIs under the Shishu, Kishore, Tarun and Tarun Plus categories.
Prime Minister's Employment Generation Programme
Credit-linked subsidy for setting up new micro-enterprises in manufacturing and service sectors, with higher subsidy for special categories and rural areas.
Stand-Up India
Bank loans between ₹10 lakh and ₹1 crore for at least one SC/ST borrower and one woman borrower per bank branch to set up a greenfield enterprise.