/ DPIIT Specialist · Updated 2026-10-22
Best CA for DPIIT Startup India + Section 80-IAC Application, 3-year 100% tax holiday secured.
DPIIT (Department for Promotion of Industry and Internal Trade) Startup India recognition unlocks Section 80-IAC 100% tax holiday for 3 of first 10 years. Also enables various government procurement + patent fee rebates + angel tax Section 56(2)(viib) legacy clean-up. BQP end-to-end DPIIT application + Section 80-IAC claim + ongoing eligibility monitoring. Here's the complete 2026 framework.
DC
Written by CA Durgesh Chavda
Chartered Accountant (ICAI) · Founder, Bharat Quantum Prospera · US incorporation, India-US DTAA, FEMA ODI, NRI taxation, cross-border structuring · LinkedIn
/ Eligibility criteria
Who qualifies.
- Incorporated on or after 1 April 2016 (current scheme window).
- Private Limited Company / LLP / Partnership firm (not sole proprietor).
- Turnover below INR 100 crore in any FY.
- Works toward innovation / improvement in product / process / service OR has scalable business model with high potential for employment / wealth creation.
- Not formed by splitting up / reconstruction of existing business.
- Not more than 10 years from incorporation.
/ Section 80-IAC tax holiday
The core benefit.
- 100% deduction of profit for any 3 consecutive years out of first 10 years of incorporation.
- Election of specific 3 years is strategic: typically chosen when startup is first profitable (don't waste tax holiday on loss years).
- Separate from Section 115BAA (22% rate) - 80-IAC claim excludes 115BAA opt-in during claim years.
- Separate application via Form 10-IAC after DPIIT recognition.
/ Other DPIIT benefits
Beyond 80-IAC.
- Section 56(2)(viib) angel tax relief (though Section 56(2)(viib) abolished Finance Act 2024 - historical cases still relevant).
- Public procurement: 25% public procurement from DPIIT startups mandatory for Central Government.
- GEM (Government e-Marketplace) preferential eligibility.
- Patent fee rebate (up to 80%).
- Trademark fee rebate (50%).
- Fast-track patent examination.
- IPR facilitation support.
- IEM compliance easing.
- Section 54GB long-term capital gain reinvestment exemption.
/ Application workflow
Step-by-step.
- Pre-check eligibility (incorporation date + entity type + turnover + innovation / scalability).
- Prepare: incorporation certificate + PAN + brief company description + innovation / scalability pitch + financials.
- Register on DPIIT Startup India portal (startupindia.gov.in).
- Submit DPIIT recognition application via portal.
- DPIIT review: 1-4 weeks typical. Rejection reasons: non-innovative business, reconstruction, missing docs.
- DPIIT Recognition Certificate issued.
- For Section 80-IAC: separate application via Form 10-IAC + Inter-Ministerial Board (IMB) review. Typically filed in year of first profit.
- IMB approval = Section 80-IAC claim eligible.
- Claim via ITR for elected 3 consecutive years.
Last updated: 2026-10-22.
/ Ready when you are
DPIIT recognition + Section 80-IAC 3-year tax holiday?
End-to-end: DPIIT application + Form 10-IAC + IMB + 3-year election strategy + ongoing compliance. BQP startup specialist practice.
FAQ
Common questions, answered.
What's the DPIIT Startup India eligibility window?
Incorporated on or after 1 April 2016 (current scheme). Private Limited Company / LLP / Partnership firm. Turnover below INR 100 crore in any FY. Works on innovation / improvement OR scalable business model. Not from splitting / reconstruction. Not more than 10 years from incorporation.
What's Section 80-IAC 3-year tax holiday?
100% deduction of profit for any 3 CONSECUTIVE years out of first 10 years of incorporation. Elect strategically - typically first profitable years. Requires separate application via Form 10-IAC + Inter-Ministerial Board (IMB) approval. Mutually exclusive with Section 115BAA (22% rate) during claim years.
Does DPIIT recognition last forever?
DPIIT Recognition Certificate valid until 10 years from incorporation OR turnover crosses INR 100 crore - whichever earlier. Automatic lapse post those triggers. Ongoing eligibility must be maintained for Section 80-IAC claim.
Can I combine Section 80-IAC with Section 115BAA?
No - during Section 80-IAC claim years, cannot opt into 115BAA. Standard regime applies with 80-IAC 100% deduction. Post-80-IAC years, can opt into 115BAA (22%). Model which combination optimises over startup's growth trajectory.
Does Finance Act 2024 abolition of Section 56(2)(viib) matter for new DPIIT startups?
Section 56(2)(viib) was abolished for all funding rounds post Finance Act 2024 - new startups no longer face angel tax risk regardless of DPIIT. Historical pre-abolition cases still relevant. DPIIT recognition remains valuable for Section 80-IAC + other benefits even without 56(2)(viib) angle.
Does BQP handle DPIIT + Section 80-IAC + ongoing compliance?
Yes - end-to-end startup practice. DPIIT application + Section 80-IAC Form 10-IAC + IMB approval + annual compliance + Section 54GB reinvestment planning + ongoing eligibility monitoring + fundraising + ESOP + 115BAA transition when 80-IAC expires. WhatsApp +91 78018 87130.
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