Startup ecosystem · Tax
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Sec 140, Income-tax Act 2025 (old Sec 80-IAC) gives DPIIT-recognised startups a 100% profit deduction for any 3 consecutive years within the first 10 years of incorporation. Applicable to Pvt Ltd and LLP only. Not available to OPC or sole proprietors.
IT Act 1961, Sec 80-IAC (now 140) | Finance Act 2024 extended to 2030
The critical step most miss: DPIIT recognition is necessary but not sufficient. You must separately apply to the Inter-Ministerial Board (IMB) on the Startup India portal for certification. Without IMB certificate, Sec 140 (old Sec 80-IAC) deduction cannot be claimed even with DPIIT recognition. Strategy: Apply for IMB in Year 2-3. Claim Sec 140 (old Sec 80-IAC) for Years 3, 4, 5 when you're most profitable. Don't waste it on loss-making years.
Talk to a Savvy for the exact next step on your case.
Connect now
A Savvy replies in minutes.
Fixed price before you pay. Your Savvy is paid only after you accept the work.
General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.