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Startup Tax Exemption: How to Apply for Section 80-IAC Exemptions

PublishedFebruary 2026
Reading Time4 min read
Audience FocusCorporate Operations

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To support early-stage companies, the Government of India provides a 3-year income tax holiday under Section 80-IAC of the Income-tax Act. Eligible startups can apply through the DPIIT portal to obtain this exemption.

Eligibility Criteria for Section 80-IAC

To qualify for the tax holiday, startups must satisfy the following conditions:

  • DPIIT Recognition: The entity must be recognized as a startup by the Department for Promotion of Industry and Internal Trade (DPIIT).
  • Company Type: Must be incorporated as a Private Limited Company or a Limited Liability Partnership (LLP).
  • Incorporation Date: Must be incorporated on or after April 1, 2016.
  • Innovation Focus: The startup must demonstrate a scalable business model focused on innovation, development, or improvement of products, processes, or services.

Filing Procedure on DPIIT Portal

Compile details of the incorporation, proof of innovative process structure, and submit the tax holiday application dossier. MSR's CA and legal desk helps draft DPIIT project reports to ensure approval success.

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