“80 IAC Tax Exemption” refers to Section 80IAC of the Income Tax Act, which provides tax benefits to eligible startups in India. This section allows startups to avail a deduction of 100% of their profits and gains for a specified number of years.
In India, startups seeking to avail of the 80 IAC tax exemption need to fulfill certain conditions. To be eligible:
- Incorporation Date: The startup must have been incorporated on or after April 1, 2016, but before April 1, 2023.
- Business Nature: The startup should be engaged in developing, innovating, deploying, or commercializing new products, processes, or services driven by technology or intellectual property.
- Certification: It should be certified as an eligible startup by the Inter-Ministerial Board of Certification, which verifies the innovation and scalability of the business.
- Turnover Limit: The total turnover of the startup should not exceed INR 100 crore (approximately) in any of the financial years since its incorporation.
- Promoter Ownership: The eligible startup’s promoter(s) or founder(s) should hold at least 51% of the voting rights.
In India, startups seeking to avail the 80 IAC tax exemption need to fulfill certain conditions. To be eligible: