Tax Exemption Certificate - Airawat Consultancy Services

Tax Exemption Certificate

A Tax Exemption Certificate under Section 80-IAC of the Income Tax Act allows eligible startups to claim 100% income tax exemption on profits for 3 consecutive years out of 10 years from incorporation. It helps startups preserve capital during their early growth phase. Only DPIIT-recognized startups can apply for this certificate through the Startup India portal.

Benefits

Benefits of the Tax Exemption Certificate

  • 1

    100% exemption on income tax for 3 out of 10 years

  • 2

    Helps improve cash flow and profitability

  • 3

    Boosts investor confidence by reducing tax liability

  • 4

    Encourages growth and reinvestment in the early years

  • 5

    No tax on profits during approved years

Documents Required for Tax Exemption Certificate

  • DPIIT Recognition Certificate

  • Certificate of Incorporation (COI)

  • PAN Card of the entity

  • Board Resolution authorizing tax exemption application

  • Financial statements (balance sheets, P&L, ITRs if available)

  • Detailed Pitch Deck / Business Plan

  • Nature of business write-up

  • Details of innovation / R&D / IP (if any)

  • Declaration form (self-certified)

Eligibility Criteria for Tax Exemption (Section 80-IAC)

Be a DPIIT-recognized startup
Be a Private Limited Company or LLP
Be incorporated on or after 1st April 2016 and before 1st April 2025
Have turnover less than ₹100 crore in any previous financial year
Not be formed by splitting or reconstructing an existing business
Be working towards innovation, development, or scalability
Must not be engaged in sectors like real estate, finance, or alcohol