Startup Tax Exemption

The Government of India provides various tax benefits and exemptions to eligible startups recognized under the Startup India initiative. These incentives are designed to encourage innovation, entrepreneurship, investment, and business growth during the early stages of a startup’s journey.

CorpAlign assists startups in evaluating eligibility, preparing documentation, and obtaining approvals for applicable tax exemptions and benefits under the relevant provisions of the Income-tax Act.

Benefits of Section 80-IAC
• 100% deduction on eligible business profits
• Tax saving during the initial growth phase
• More funds available for expansion, hiring, and innovation
• Encourages reinvestment and business scaling

CorpAlign 80-IAC Startup Tax Advisory Services
• Eligibility assessment for 80-IAC benefit
• DPIIT Startup Recognition assistance
• Preparation of application and supporting documents
• Filling of Application for availing Tax exemption
• Assistance with pitch deck and supporting documents

Our Process
• Eligibility review and assessment
• Evaluation of available tax benefits
• Documentation preparation
• Application and compliance support
• Liaison and follow-up assistance
• Ongoing advisory and compliance monitoring

FAQs

Q1. Is DPIIT recognition alone enough to claim 80-IAC exemption?
A1. No. DPIIT recognition and eligibility for deduction under Section 80-IAC are separate requirements. A startup must fulfil the conditions prescribed under Section 80-IAC and obtain the required approval/certification.

Q2. How many years can a startup claim 80-IAC benefit?
A2. Eligible startups can claim the deduction for three consecutive assessment years as permitted under the section.

Q3. Can LLPs claim 80-IAC benefits?
A3. Yes, eligible LLPs can claim the benefit if they satisfy the prescribed conditions.

Q4. Is every startup eligible for 80-IAC?
A4. No. Only startups meeting conditions relating to incorporation, turnover, business activity, and certification requirements can claim the benefit.