After getting a DPIIT Certificate (Startup Recognition Certificate), a Startup is eligible to apply for Tax exemption under section 80 IAC of the Income Tax Act. Post getting clearance for Tax exemption, the Startup can avail tax holiday for 3 consecutive financial years out of its first 10 years since incorporation.
Eligibility Criteria for applying to Income Tax exemption (80IAC):
- The entity should be a recognized Startup.
- Only Private limited or a Limited Liability Partnership is eligible for Tax exemption under Section 80IAC.
- The Startup should have been incorporated after 1st April, 2016.
If You are running a Pvt Ltd or LLP but does not have DPIIT Startup Certificate, then
Step 1: Apply DPIIT Startup Certificate.
How to Apply Startup recognition ?
Step 2: Apply For Tax Exemption.