80IAC Exemptions

This query is : Resolved

V (Querist)
Follow

20 September 2024 The eligible company has obtained DPIIT certification and has completed the startup recognition norms. Are there any additional requirements we need to fulfill? Do we need to file any additional forms, such as Form 10BBC? Please elaborate on the compliance aspects to claim the 80IAC exemption for a block of 3 years out of the initial 10 years period. Also, highlight any peculiar aspects that need to be considered.

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
Follow

12 August 2025 Great question about Section 80IAC! Here’s a detailed explanation about claiming exemption under Section 80IAC for eligible startups:
1. Basic Eligibility for 80IAC
Applies to eligible startups recognized by DPIIT (Department for Promotion of Industry and Internal Trade).
The startup must be engaged in eligible business activities.
Exemption is for 100% profit of the startup for any block of 3 consecutive years out of the first 10 years from incorporation.
2. Certification Requirement
The startup must obtain DPIIT recognition certificate (which you have).
The company should be incorporated after 1 April 2016.
3. Additional Requirements
The startup must file a declaration in Form 10I with the Income Tax Department within 30 days from the end of the month in which the startup is recognized by DPIIT.
The startup must not opt for presumptive taxation under Section 44AD or 44ADA.
4. Form 10BBC - What is it?
Form 10BBC is a self-declaration by the startup certifying that it meets the eligibility conditions for claiming deduction under Section 80IAC.
It needs to be submitted along with the income tax return.
If you claim 80IAC exemption, you must attach Form 10BBC.
5. How to Claim Exemption?
Calculate the profits eligible for deduction under 80IAC for the chosen block of 3 consecutive years.
Submit Form 10BBC along with the return to claim the deduction.
Keep DPIIT recognition and all related documents safely as they may be required for scrutiny.
6. Peculiar/Important Points
Exemption is for a block of 3 consecutive years, and you can choose any block within the first 10 years.
If you don’t claim exemption for a block, it cannot be carried forward or claimed later.
The startup should be engaged in eligible sectors (mostly innovation, tech, etc.) as per DPIIT guidelines.
Income from eligible business only is considered (other income is not eligible for exemption).
The exemption is limited to profits derived from the eligible startup business.
You cannot claim other specified deductions on the same income which is exempt under 80IAC.
Must file return on or before due date to claim the exemption.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now