Section 80-IAC Tax Holiday

Also called 80-IAC and Startup Tax Holiday

An Indian income-tax deduction that lets an eligible startup deduct 100 percent of its profits for any three consecutive years out of its first ten. It needs DPIIT recognition plus a separate certificate from the Inter-Ministerial Board, and is open to companies and LLPs incorporated before 1 April 2030 with turnover up to ₹100 crore.

Why it matters

Most startups have no profit to shelter in their early years, which is why the choice of the three years matters. Only a small share of recognised startups get the board's certificate, and a company still pays minimum alternate tax, so it is a benefit to plan for rather than assume. Founders still call it 80-IAC, though the Income-tax Act, 2025 gave it a new section number.

For example

A profitable SaaS startup with the board's certificate claims the deduction for its sixth to eighth years, when profits are largest, rather than its loss-making early years.

Go deeper

Startup Tax Holiday Lives On: Section 80-IAC Incorporation Window Extended to 1 April 2030 Oquilia · article An October 2026 explainer of the startup tax holiday: the incorporation window to 1 April 2030, the ₹100 crore turnover test, the Inter-Ministerial Board certificate, the filing deadline, and minimum alternate tax. Open oquilia.com →

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