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Start-up Tax exemption

Ashu jain (Practicing) (126 Points)

10 February 2020

We have already registered as start-up and got the DIPP Registration. What is the procedure for applying of Section 80 IAC deduction for startups under Income Tax Act.

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VIPINKUMAR K TIWARI (Financial Professional) (196 Points)
Replied 11 February 2020

80 IAC Tax exemption - Application Process

An eligible Startup shall make an online application to DPIIT (Department for Promotion of Industry and Internal Trade) with the following

a copy of Certificate of Incorporation or Registration
a write-up about the nature of business highlighting how it is working towards innovation, development or improvement of products or processes or services, or its scalability in terms of employment generation or wealth creation.

The Inter-Ministerial Board of Certification constituted by DPIIT after review of application may call for such documents or information and making such enquires, as it may deem fit and finally shall recognise the eligible entity as Startup or reject the application by providing reasons.

After getting recognition a Startup under Startup India Action Plan, the business entity can apply for Tax exemption under Section 80 IAC of the Income Tax Act.

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