Startup India Tax Exemption

Is Your Company A Startup?

Your company must meet the following criteria to be considered eligible for Startup India Registration.

Company Age

Period of existence and operations should not be exceeding 10 years from the Date of Incorporation for Startup India Registration.

Company Type

Incorporated as a Private Limited Company, a Registered Partnership Firm or a Limited Liability Partnership for Startup India Registration.

Annual Turnover

Should have an annual turnover not exceeding Rs. 100 crore for any of the financial years since its Incorporation for Startup India Registration.

Original Entity

Entity should not have been formed by splitting up or reconstructing an already existing business for Startup India Registration.

Innovative & Scalable

Should work towards development or improvement of a product, process or service and/or have scalable business model with high potential for creation of wealth & employment for Startup India Registration.

Tax Exemption 80 IAC:

Post getting recognition a Startup may apply for Tax exemption under section 80 IAC of the Income Tax Act. After getting approval for Tax exemption, the Startup can avail tax holiday for 3 consecutive financial years out of its first ten years since incorporation.

Eligibility Criteria for applying to Income Tax exemption (80 IAC):

  • The entity should be a recognized Startup.
  • Only Pvt Ltd or a Limited Liability Partnership is eligible for Tax exemption under Section 80IAC.
  • The Startup should have been incorporated after 1st April 2016.

Requirement for Form 80 IAC (Tax Deduction Eligibility Certificate)

  • Memorandum of association (for Pvt Ltd) or LLP Deed (for LLP)
  • Board Resolution (if any)
  • Annual Accounts & Income Tax returns of the startup for the last three financial years.
Toolkit for Financial Statements

Updated financial statements (Balance Sheet, Profit & Loss statement, Income Tax Returns) for the past three years or from the year of incorporation

Startup Video Link

The video should be of a maximum of 2 minutes and should cover the following aspects:

  • Brief about what your startup does or is planning to do
  • Showcase the working of the prototype/proof-of-concept developed by you
  • Market traction that your product/service has generated till now, if your product/service has already been launched in the market

Pitch deck

Toolkit for Pitch deck

Pitch deck (Maximum 5 slides). Your pitch deck must have the following:
  • Information about the product/service offering of your startup
  • Brief about how is your startup innovative and/or scalable
  • Number of people employed by your startup and funding raised, if any
  • Credentials of Founders/Management
  • Screenshots/images of your product/website and website link, if any

By considering these above points Department will grant Tax Exemption Certificate.