What is the Section 80-IAC startup tax exemption?

Name: Vijay R Singh & Co.
Address: Office No. 4, Vishal CHSL, D Wing, Sir Mathuradas Vasanji Road, Azad Nagar, Opp. Andheri Gymkhana, Andheri East, Maharashtra, 400069, IN
Telephone: +91 98607 23959

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerSection 80-IAC is the startup tax holiday: a DPIIT-recognised eligible startup can deduct 100% of its profits for any 3 consecutive financial years out of its first 10. It’s designed to let early-stage startups reinvest profits during their growth years instead of paying tax on them.

How it works

You pick any 3 consecutive years within your first 10 and claim a full deduction of eligible profits for those years — useful once the startup turns profitable.

The catch

You must be an eligible startup incorporated within the notified window and get IMB approval. Confirm the current incorporation cut-off and conditions per the latest Finance Act.

NRI Taxation

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This answer is general information for NRIs, not tax advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.