Section 140 Tax Holiday Calculator — Startup Tax Savings & Best 3 Years
Eligible startups get 100% of profits tax-free for any 3 consecutive years in their first 10. Enter your projections and see which window saves the most – and what the holiday is actually worth in rupees.
| Income-tax Act, 1961 | Income-tax Act, 2025 | Provision |
|---|---|---|
| Section 80-IAC | Section 140 | 100% deduction, any 3 consecutive years in the first 10 — conditions in s.140(3) |
Projected profits — enter up to 10 years (leave blanks where loss-making)
Computation
Think you qualify for the 140 holiday?
DPIIT recognition is the easy half – the IMB application is where it is won or lost. We handle both, end to end.
Book a 15-minute callFrequently asked questions
What is the Section 140 tax holiday?
A 100% deduction of profits for any 3 consecutive years out of the first 10 years from incorporation, for eligible DPIIT-recognised startups holding an Inter-Ministerial Board certificate.
Which 3 years should a startup choose for 140?
The startup chooses – so the right answer is the 3 consecutive years with the highest projected profits within the first 10. Claiming too early, on small profits, wastes the holiday.
Is DPIIT recognition enough to claim 140?
No. DPIIT recognition is the entry ticket; the deduction itself needs a separate approval from the Inter-Ministerial Board (IMB), and only a small fraction of recognised startups have it.