Startup Tax Exemption (80-IAC)
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Unlock 100% Tax Exemption Under Section 80-IAC
Under Section 80-IAC of the Income Tax Act, eligible startups recognized by DPIIT can claim a 100% deduction on their business profits for any three consecutive years out of their first ten years of incorporation. This massive benefit allows fast-growing startups to completely reinvest their early-stage profits into scaling their operations without the heavy burden of corporate income tax. However, this approval is not automatic and is granted exclusively by the Inter-Ministerial Board (IMB).
Financial Impact of Section 80-IAC Exemption
Securing the 80-IAC exemption completely changes the financial trajectory of an early-stage startup, freeing up critical capital that would otherwise go to taxes.
- Zero Corporate Tax: Retain exactly 100% of your net profits for three operational years.
- Extended Window: Choose any 3 consecutive years within your first 10 years when profits are highest.
- Investor Attraction: Startups with tax exemptions provide significantly better ROI and are vastly more attractive to VCs.
- Improved Cash Flow: Eliminating the standard 25%+ corporate tax burden ensures superior operational liquidity.
- Angel Tax Shield: Crucial preliminary step towards protecting equity funding from Angel Tax under Section 56.
Who Should Opt for This?
Our Interactive Planning Approach ensures that every client is actively involved in shaping their business strategy to match their goals.
Profitable Startups
DPIIT-recognized startups that are currently generating, or are about to generate, net profits.
Funded Companies
Startups receiving institutional funding looking to drastically optimize their cash burn rate.
Tech Innovators
Product companies with high margins that need maximum capital for R&D reinvestment.
Streamlined Registration Process
Experience a hassle-free incorporation with our 100% online, transparent, and legally compliant methodology.
- DPIIT Verification
- Financial Auditing
- IMB Application
- Board Approval
Documents Required
- DPIIT Recognition Certificate (DIPP Number)
- Audited Financial Statements (Balance Sheet & P&L)
- Income Tax Returns (ITR) of the company since incorporation
- Pitch Deck and Highly Detailed Business Plan
- Video link explaining the core innovation of the product or service
Why Choose WealthWave?
IMB Application Expertise
We meticulously prepare the complex business plan and pitch required by the strict IMB board.
CA Certified Financials
Our Chartered Accountants ensure your financials perfectly align with the IMB application requirements.
End-to-End Coordination
We aggressively handle all queries, clarifications, and hearings raised by the Ministry during the review.
Proven Track Record
We have an exceptional success rate in securing 80-IAC exemptions for eligible innovative startups.
Frequently Asked Questions
Is DPIIT recognition enough to get the tax exemption?
What is the timeline for claiming the 3 years?
What if my startup was incorporated before 2016?
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