Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Eligibility checklist
- DPIIT-recognised startup
- Pvt Ltd or LLP (not a partnership for 80-IAC)
- Incorporated within the notified window
- Turnover under ₹100 crore
Confirm the current incorporation cut-off date.
The IMB step
Even if you tick every box, the holiday only applies once the Inter-Ministerial Board approves your application.
The conditions that quietly disqualify
Beyond the headline checklist, a few conditions catch applicants out. The entity must be a Private Limited company or an LLP — a registered partnership qualifies for DPIIT recognition but not for the 80-IAC holiday. It must be incorporated within the government’s notified window, which has been extended several times but has a current cut-off date, so a startup incorporated after it isn’t eligible however innovative. Turnover must stay under ₹100 crore in the year the deduction is claimed. And the not-formed-by-splitting-or-reconstruction condition applies here too, along with limits on using second-hand plant and machinery beyond a threshold. Even with every box ticked, the holiday only applies once the Inter-Ministerial Board grants its certificate — eligibility on paper isn’t the approval. Because the IMB looks for genuine innovation or scalability, the same evidence that wins recognition needs to be stronger here. The practical step is to confirm you’re within the incorporation cut-off, are a company or LLP, and have a clear innovation case, before investing effort in the application. Confirm the current cut-off date and conditions per the latest Finance Act, since these are the parts most often revised.