Are you planning to start a new business in India and would like to lower your tax expense? The Government of India, in its pursuit to promote entrepreneurs, has started the Startup India scheme, which aims to assist entrepreneurs with advantages such as access to funding, recognition by the government, mentorship, and, more importantly, tax exemption on income under Section 80-IAC of the Income Tax Act.
This blog discusses all you must know regarding the Startup India registration process and the 100% tax relief available to qualifying startups.
What is the Startup India Scheme?
In 2016, the Government of India launched the Startup India program, a flagship initiative with a vision of fostering innovation, encouraging new entrepreneurial ventures, and facilitating employment opportunities.
Objectives of the Scheme:
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Fostering entrepreneurship in various sectors
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Supporting innovation and scalable business models
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Facilitating job creation
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Offering regulatory assistance to ease entry for startups
Key Benefits of Registering Under Startup India
Startups registered under this program and identified by the DPIIT Department for Promotion of Industry and Internal Trade have the following advantages:
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Official DPIIT recognition as a Startup
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Exemption from tax under Section IAC of the Income Tax Act
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Accelerated patent and intellectual property rights (IPR) filings
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Ease of compliance with labor and environmental regulations
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Eligibility to bid for government tenders without experience
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Access to sponsored Fund of Funds for Startups (FFS)
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Opportunities for industry networking, incubation, and mentorship
Your first step in unlocking these advantages and creating a solid base for your venture is registering under Startup India.
Section 80 IAC Tax Exemption: A Game Changer for Startups
After your startup is identified by DPIIT, you can apply for Section 80-IAC, a strong tax benefit that can really enhance your cash flow and reinvestment capacity.
What is Section-80 IAC?
Section 80-IAC of the Income Tax Act provides income tax exemption on profits to eligible startups for any three consecutive financial years out of the first ten years of incorporation.
Eligibility Criteria for Section IAC
To be eligible for the tax benefit under Section IAC, your startup should:
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Be a Private Limited Company or Limited Liability Partnership (LLP) incorporated on or after 1st April 2016
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Have an annual turnover of not increasingly than 100 crore
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Be involved in the innovation, development, or improvement of products, processes, or roles, or be a scalable business model with strong potential
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Not be established by dividing up or rebuilding a current business
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Be recognized by DPIIT
Benefits of Section IAC for Startups
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Tax Exemption: Tax exemption from income tax on profits for 3 years
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Improved Cash Flow: Invest tax savings in augmenting operations
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Flexibility: Choose any 3 years of exemption within the first 10 years
Documents Required for Section IAC
Eligibility for such tax exemption involves preparing and filing a number of documents, which include:
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Pitch deck highlighting your business model and innovation
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Innovation up detailing the novelty of your idea
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Board resolutions sanctioning application for exemption
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Financial statements and incorporation certificates
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DPIIT recognition certificate
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Supporting documents for scalability and technology orientation
How GetMyCA Helps You Navigate the Process
Claiming tax benefits under Section 80-IAC is a structured and oriented process. This is where GetMyCA comes into the picture to be your trusted compliance friend.
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Startup India DPIIT Registration
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Section IAC Tax Exemption Filing
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Personalized Pitch Deck and Innovation Summary Preparation
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Documentation Support and Portal Filing
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Compliance and Approval Support on a regular basis
GetMyCA takes care of the entire process end-to-end so your application stands out and gets approved faster. With its team of compliance and tax professionals, you can focus on growing your startup while we take care of the regulatory extra.
Why Every Startup Should Register Under Startup India
Beyond the tax savings, Startup India registration establishes your business as a credible, recognized entity. It opens doors to funding, government collaborations, tenders, global expansion, and smoother compliance pathways.
Whether you're in tech, manufacturing, expertise, or any other innovative field, Startup India recognition is a strategic move toward long-term success.
Conclusion: Begin Your Journey with GetMyCA
If you're a founder of a startup looking to save taxes and maximize growth, Startup India registration and Section IAC exemption are must-do's. But the paperwork, checks on eligibility, and documentation can be daunting.
Where GetMyCA steps in.
With years of experience working with startups from all over India, GetMyCA makes your registration and tax exemption filing free and monitored. From DPIIT registration to drafting innovation documents, we take care of it so you can concentrate on growing your business.
Let GetMyCA be your partner in compliance for startup success.
FAQs
1. Are there any tax exemptions for startups in India?
Yes, Indian startups are eligible for a 100% income tax exemption under Section 80-IAC for three out of their first ten years. DPIIT-registered startups also get Angel Tax Exemption, eased compliance, and other tax benefits.
2. Who can be included in the Startup India scheme?
A startup company should be either a private limited company or an LLP that has been incorporated on or after April 1, 2016, and has an annual turnover of less than ?100 crore. It should be involved in innovation, development, or a scalable business model and must be approved by DPIIT.
3. What is Section 80-IAC of the Income Tax Act?
Section 80-IAC provides three years of profit tax exemption within the first decade. To benefit, a startup has to receive DPIIT recognition and provide the following documents: a pitch deck, financial documents, and an incorporation certificate.