Section 80-IAC Tax Exemption

Under Section 80-IAC of the Income Tax Act, an eligible DPIIT-recognised startup can claim a 100 percent deduction on profits for any three consecutive years within its first ten years. A dedicated inter-ministerial board certifies eligibility. It is one of the highest-value non-dilutive benefits for profitable early-stage startups. The three-year exemption window is flexible within the startup's first ten years — a company can choose to claim it in whichever three consecutive years it is most profitable, rather than being locked into the earliest available years, which makes timing the application strategically important. Certification by the inter-ministerial board is a separate step from DPIIT recognition itself, so a startup should expect two distinct approval processes on the Startup India portal before it can actually claim the deduction on its tax filing.