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Startup tax holiday certificate from the Inter-Ministerial Board, Sec 80-IAC (Sec 140, Income-tax Act 2025)

  • This is the separate certificate that lets a recognised startup company or LLP pay no regular income tax on its business profits for any 3 consecutive years out of its first 10.
  • Deadline: Any time after DPIIT recognition and before the first tax year of the chosen 3-year block; the certificate must be held when the deduction is claimed
  • Done in 5 to 7 working days to prepare after documents; IMB decision reported at about 120 days for complete applications, practitioners see 3 to 12 months
  • Prepared by your Savvy, checked by a CA
  1. DPIIT recognition certificate
  2. Company or LLP
  3. Eligibility and tax planning note
  4. IMB certificate of eligible business
The law and the stepsPay and start · ₹4,999One time, + 18% GST

Answer in brief

This is the separate certificate that lets a recognised startup company or LLP pay no regular income tax on its business profits for any 3 consecutive years out of its first 10. We check eligibility, build the scored application with financials, CA certificates and evidence of innovation, jobs and funding, file it on Startup India and handle Board queries.

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From the official sources

What the law says, and what trips people up

From the official portal's manuals and FAQs, with the source for each point.

The law

  • Income-tax Act 2025, Sec 140 (earlier Income-tax Act 1961, Sec 80-IAC)

    100% deduction of profits of an eligible start-up for 3 consecutive tax years of its choice out of 10 years from incorporation; company or LLP incorporated on or after 1 April 2016 and before 1 April 2030; must hold an eligible business certificate from the Inter-Ministerial Board; accounts must be audited and the report filed by the specified dateSource

  • Income-tax Act 2025, Sec 140, turnover condition

    Turnover must not exceed the limit in the relevant tax year; the annotated text shows ₹300 crore as amended by the Finance Act 2026, while older sources say ₹100 croreSource

  • Sec 140 (old Sec 80-IAC) conditions (Income Tax Department)

    Not formed by splitting up or reconstruction; second-hand plant and machinery not more than 20% of total; DPIIT recognition alone does not qualify; certificate applied for in Form-1 to DPIIT, can be rejected with reasons or revoked if obtained on false informationSource

  • DPIIT Notification G.S.R. 108(E), 4 February 2026

    Only recognised private limited companies and LLPs can apply for the tax certificate; partnerships and cooperatives cannot; documents include MoA or LLP deed, board resolution, audited accounts for up to 3 years and proof of innovation, wealth creation and employmentSource

  • Income-tax Act 1961, Sec 115BAA (now Sec 200)

    A company that opts for the 22% concessional regime cannot claim the Sec 140 (old Sec 80-IAC) deduction (and MAT does not apply to it)Source

  • Government fee

    No application fee is shown on the Startup India Sec 140 (old Sec 80-IAC) form or page (https://www.startupindia.gov.in/maithali/content/sih/en/startupgov/startup_recognition_page.html).

On the portal

  1. Log in to startupindia.gov.in with the account linked to the DPIIT recognition
  2. Open the 80-IAC tax exemption application from the recognition or tax exemption section
  3. Step 1: upload MoA or LLP deed, board resolution, shareholding pattern, ITR, pitch deck, website and the mandatory video link
  4. Step 2: verify recognition details pulled from the DPIIT form
  5. Step 3: annual accounts, CA certification, credit rating and growth details
  6. Step 4: innovation (IPR, awards, stage, qualified staff), wealth creation (funding, revenue, profit) and employment parameters
  7. Step 5: accept declarations, attach board resolution or CA-attested declaration, submit
  8. Track Application Status and answer clarifications

What trips people up

  • Founders think DPIIT recognition is enough to claim the holiday

    Apply for and receive the IMB certificate before claimingSource

  • Return filed claiming the deduction while the IMB application is pending

    Do not claim without the certificate; plan the block for a later yearSource

  • Company opted for 115BAA and loses the holiday

    Use the 3-year holiday first and consider 115BAA afterwardsSource

  • Expecting zero tax in holiday years

    Budget for MAT (company) or AMT (LLP); credit can be carried forwardSource

  • Application not approved in the round

    Strengthen technology, scalability, market and economic impact evidence and resubmitSource

  • Missing formats or certificates make the application fail

    Use the HR and CA declaration formats linked in the form and attach every required itemSource

People ask

Can a partnership or proprietorship get the tax holiday?

No. Only private limited companies and LLPs can apply for the certificate.Source

Which years can we choose?

Any 3 consecutive tax years out of the first 10 years from incorporation.Source

Our company was formed in 2027. Are we eligible?

Yes, if incorporated before 1 April 2030 and other conditions are met.Source

How long does approval take?

DPIIT said complete applications are assessed within 120 days under the revised framework; practitioners report 3 to 12 months.Source

Is the section still 80-IAC?

From tax year 2026-27 the deduction is in Sec 140 of the Income-tax Act 2025; 80-IAC governs earlier years.Source

Do we pay any tax in the holiday years?

Yes. MAT for companies or AMT for LLPs still applies.Source

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Step 1 of 4 · What we need from you

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  • DPIIT recognition certificate
  • MoA or LLP deed
  • Board or partners resolution
  • Shareholding pattern with DIN or DPIN
  • Audited financial statements and ITR acknowledgements
  • CA certificates on formation and scalability
  • Pitch deck, website and video link
  • HR declaration and employee data
  • IPR, awards and funding proofOptional
  • Credit rating, if anyOptional

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One time. Delivered in 5 to 7 working days to prepare after documents; IMB decision reported at about 120 days for complete applications, practitioners see 3 to 12 months. Due: Any time after DPIIT recognition and before the first tax year of the chosen 3-year block; the certificate must be held when the deduction is claimed

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