Tax holiday for eligible start-ups (Section 80-IAC)

Eligible DPIIT-recognised startups can deduct 100% of profits for any three consecutive years within their first ten years.

Run by

Ministry of Finance (CBDT) / DPIIT Inter-Ministerial Board

Funding

Amount varies

Deduction of 100% of profits and gains of the eligible business for three consecutive assessment years out of ten years from incorporation.

Who can apply

• Private limited company or LLP incorporated on or after 1 April 2016 and before 1 April 2030
• Turnover not more than Rs 100 crore in the year claimed
• Holds a certificate of eligible business from the Inter-Ministerial Board
• Not formed by splitting up or reconstructing an existing business

How to apply

Apply for the 80-IAC certificate on the Startup India portal after DPIIT recognition.

Timing

Incorporation must be before 1 April 2030. Income-tax Act 2025 took effect 1 April 2026; check the corresponding provision number.

Last checked

2026-10-11

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