What is Section 80 IAC?
Section 80 IAC provides up to 100% tax exemption for startups recognized by the DPIIT. The tax exemption can be availed for any three consecutive assessment years, as long as the Startup is eligible.
If a Startup has a Startup Recognition (DIPP Certificate), then a Startup may 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 ten years since incorporation.
Other Tax Benefits For MSMEs
Reduced corporate tax rates80-IEC export exemptionsTax holiday schemesAccelerated depreciationCapital gains exemptionsWhy Choose Egniol for Tax Exemption under 80 IAC?
Quick Application Process
Easy steps to apply for 80 IAC exemption
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Eligibility Criteria
Once you have checked your payable tax in the tax calculator for MSMEs and wish to apply for tax exemption, here is the eligibility criteria:
- ✅Private limited company or LLP must be incorporated after March 31, 2016 and before April 1, 2025.
- ✅Business turnover of the company or LLP must be below ₹100 Crore in the year before the assessment year to claim the deduction under section 80-IAC.
Income Tax Slabs For Individuals/Proprietor
| Income Range (₹) | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,000 - ₹24,00,000 | 25% |
| Above - ₹24,00,000 | 30% |
Tax Slabs For Companies
| Company Type | Regime | Criteria | Base Rate |
|---|---|---|---|
| LLP / Partnership | - | All Domestic | 30% |
| Pvt Ltd/PLC | Normal | ≤ ₹400 cr | 25% |
| Pvt Ltd/PLC | Normal | > ₹400 cr | 30% |
| Pvt Ltd/PLC | Sec 115 BAA | All Domestic | 22% |
| Pvt Ltd/PLC | Sec 115BAB | Newly registered manufacturing entities (01-10-2019 to 31-03-2024) | 15% |
Frequently Asked Questions
Find answers to common questions about our MSME Tax Calculator
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