Detailed Analysis

Section 80-IAC Tax Holiday

How to claim 100% Income Tax Exemption for 3 consecutive years. The reality vs the hype.

Most founders confuse DPIIT Recognition with the 80-IAC Tax Exemption. Getting recognized is easy (24 hours). Getting the tax holiday is hard (less than 1% success rate). Here is why.

The "IMB" Hurdle

To get the tax holiday, you don't just need a certificate. You need approval from the Inter-Ministerial Board (IMB). They check if your startup is "fundamentally innovative." Mere aggregators or service providers usually get rejected.

Check Your Eligibility

1. Is your entity a Private Limited Company or LLP?

The Benefits (If Approved)

  • 100% Tax Free: Pay Zero Income Tax on profits for any 3 consecutive years out of the first 10 years.
  • Angel Tax: Exemption from Section 56(2)(viib) on investments above fair market value.