Section 80-IAC Income Tax Exemption for Startups

Last checked 18 Oct 2026 against the official scheme page. Terms and dates can change, so confirm on the official site before you apply.

100% deduction of profits for 3 consecutive years within first 10 years (per PIB); no fixed rupee amount

Funding available

An eligible DPIIT-recognised startup can claim a tax holiday on profits for any 3 consecutive financial years out of its first 10 years from incorporation. Only Private Limited Companies and LLPs qualify, and approval comes through the Inter-Ministerial Board via the Startup India portal. The Finance Act 2025 extended the incorporation window to before 1 April 2030.

Eligibility Criteria

DPIIT-recognised Private Limited Company or LLP incorporated on or after 1 April 2016 and before 1 April 2030, approved by the Inter-Ministerial Board.