Section 80-IAC Tax Holiday: Eligibility, Process, and Pitfalls
A Shocking Tax Secret Most Founders Miss
Startup founders, what if I told you there’s a legal way to avoid paying taxes for 3 years… but you only have 365 days to unlock it?
You heard that right. It’s called the Section 80-IAC Tax Holiday, and most startups in India don’t even know it exists—until it’s too late.
Startup That Lost Lakhs
Let me introduce you to Rohan Sharma, a 27-year-old dreamer from Delhi who turned his fintech idea into a revenue-generating startup within 14 months of incorporation.
Everything was going great—angel funding, a growing team, happy customers.
Then, tax season arrived
While discussing profits with his CA, he casually asked,
Can we save something under the startup schemes?
The CA asked, did you apply under Section 80-IAC?
Rohan blinked. Section what?
The answer hit like a thunderbolt. He was eligible for a 3-year tax holiday, but the application should’ve been filed within 1 year of incorporation.
Rohan was now in month 14.
The window had closed. The money was lost. Forever.
Why Most Startups Never Claim This Tax Holiday
Rohan’s mistake isn’t rare—it’s a pattern we see every day.
India wants to support startups. That’s why the government launched the Section 80-IAC Tax Holiday—a scheme offering 100% income tax exemption for 3 consecutive years out of your first 10 years of incorporation.
But here’s the trap:
Most startup founders aren’t aware of it
Others think DPIIT recognition is enough (it’s not)
Many apply with the wrong paperwork and get rejected+
The deadline is non-negotiable: You must apply within 1 year
Thousands of founders lose lakhs because they didn’t know what they didn’t know
How You Can Unlock This Tax Holiday Without Stress
We’ll walk you through what 80-IAC is, who qualifies, and how to apply the right way. Let’s break this down.
What is Section 80-IAC?
It’s a provision under the Income Tax Act for eligible startups recognized by DPIIT that allows them to claim 100% tax exemption on profits for 3 consecutive assessment years.
Who is Eligible?
A startup incorporated as a Private Limited Company or LLP
Must be DPIIT recognized
Annual turnover should be below ₹100 Crores
Must be within 10 years of incorporation
The startup should be innovative or scalable with high potential
But… you must apply within 12 months of incorporation to claim this tax break.
How Legal Suvidha Makes It Effortless:
We handle everything, from DPIIT recognition to final submission.
We help you get DPIIT recognition
Draft a bulletproof application for 80-IAC
Align all your financials, pitch decks, and innovations to match eligibility
Avoid red flags that lead to rejections
Ensure you don’t miss your 12-month window
In short, we make sure you don’t leave money on the table.
What Happens When You Use This the Right Way
Imagine saving ₹5–7 lakhs in income tax every year for the next 3 years.
Imagine what your startup can do with that extra capital—hire a top developer, invest in marketing, or build out your tech stack.
This isn’t just about saving tax. It’s about unlocking growth.
When you work with Legal Suvidha, you don’t just get help filing paperwork. You get a startup legal and compliance partner who ensures you always stay one step ahead—no missed deadlines, no missed opportunities.
We’ve helped over 1,000+ Indian startups claim benefits like Section 80-IAC, and we’re ready to help you too.
Now you have two options:
Option 1: Do Nothing
Ignore this. Tell yourself you’ll “look into it later.” But by the time you act, the 12-month deadline may have passed. That’s lakhs lost in tax savings, permanently.
Option 2: Contact Legal Suvidha Now
Book a consultation with our startup experts. We’ll check your eligibility, get your DPIIT certificate (if not done), and ensure your Section 80-IAC claim is solid and submitted on time.
Act Fast: If your startup was incorporated even 7–8 months ago, you’re already running out of time. Don’t let Rohan’s story become yours.
Connect with our Domain Expert or reach out via WhatsApp for instant help.
Phone: 8130645164
Email: [email protected]
Website: www.legalsuvidha.com
Startup Compliance Guide (2025 Edition)
ROC Filing Calendar for Startups
Startup India DPIIT Recognition
