Answer

1. F

   Facts

   DPIIT (Department for Promotion of Industry and Internal Trade) recognition unlocks India's richest startup benefit package: 3-year income tax holiday, 80% patent fee rebate, self-certification under 9 labour laws, access to Startup India Seed Fund, angel tax exemption, and fast-track exits. Recognition takes 2 days. Most eligible startups never apply.

2. P

   Provisions and law

   • Sec 140 (old 80-IAC)
   • Sec 56(2)(viib) exemption
3. A

   Analysis

   DPIIT recognition, 2-day process: (1) Go to startupindia.gov.in. (2) Register → Apply for Recognition. (3) Upload: incorporation certificate, brief about innovation/improvement, PAN, and declaration. (4) Recognition certificate issued in 2 days (usually). Completely online. Free. No interview. The description of your "innovation" can be broad, improving customer experience, new tech application, new service delivery model, all qualify. Sec 140, Income-tax Act 2025 (old Sec 80-IAC) tax holiday, how to actually use it: Recognition = eligibility. But to actually claim the tax holiday: apply separately to IMBC (Inter-Ministerial Board of Certification) at DPIIT. Submit: recognition certificate, pitch deck, financials, detail of innovation. IMBC meeting happens quarterly. Wait: 3-6 months. If approved: pick the 3 best profit years within 10 years. Years with losses: skip. Years with profits: claim 100% deduction.

4. C

   Conclusion

   1. 1Check eligibility: incorporated ≤ 10 years ago, turnover < ₹100Cr, innovation/improvement angle
   2. 2Register and apply for DPIIT recognition: startupindia.gov.in → Recognition → New Application
   3. 3Upload: CoI, brief innovation description (1 paragraph is sufficient), PAN, Director/Partner KYC
   4. 4On recognition: download certificate, this is your gateway document for all startup benefits
   5. 5For Sec 140 (old Sec 80-IAC) tax holiday: apply to IMBC through DPIIT portal, separate process, 3-6 months
   6. 6For angel tax exemption: confirm investor is eligible category (resident, not specified entity)

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