The deduction can be claimed in any three years within the first 10 years from the date of incorporation/registration of the startup.

The startup cannot be created by a split or re-establishing the existing entity if the reconstruction is done under section 33b of the income tax act.

The department of promotion of industry and internal trade must acknowledge startups. The startup has received the DPIIT recognized certificate.

The startup should be created by something other than transferring equipment and plants currently in operation.

The company must be a corporation or limited liability partnership or registered as a partnership company. Startups that are registered as a different type of business entity cannot claim this deduction.

Any startup incorporated/registered after 1st April 2016 till date can avail of the tax exemption u/s 80iac

The turnover can be up to rs.100 million for each financial year, for which a deduction under 80iac is sought during the relevant assessment year.

The startup should be operating to generate employment, financial growth, and wealth creation.

The startup must create new and innovative products, processes, services, or products or create a better version of existing ones. But entities formed by the dissolution or re-establishing of an existing business need to be qualified to receive DPIIT startup tax benefits.

Section 80iac provides a 100% tax deduction for 3 years to newly-incorporated companies. To take advantage of this deduction, the application must be submitted and then approved by DPIIT. Department of promotion of industry and internal trade (DPIIT).

Only LLP and companies recognized as startups through the DPIIT can claim exemptions under section 80iac under the income tax act.

The time needed for processing applications under 80iac is contingent on various variables, and the final decision depends on the inter-ministerial committee. Where they decide at the meetings of the imb. Thus, predicting a precise timeframe is not workable, but the application process is completed within two to three weeks.

Startups may qualify for the exemption of 80iac when they are formed through the transfer of machinery previously used outside of India but not used by the company in question. Also, before its installation outside of India, the machine must be in no way used in India and then brought to India or exported to India. No deduction for depreciation was ever permitted in India.

A company ceases to be a startup after 10 years from the date of incorporation or registration if the turnover of any prior year is more than one crore rupees.

The process of obtaining the 80-iac deduction in the income tax act completely depends on the application. Like all applications, a long list of documents must be submitted. As we see, documents are the most essential element of any application. As one of the primary reasons for its final approval or rejection by the relevant authority, we strongly suggest all applicants ensure the availability of all documents needed to submit an application for tax exemption under the 80iac in the correct format and updated with current information in advance to avoid delays later.

After having all the necessary documents, follow the necessary documents. The following step would be to go to the website for startup India, and under the heading "recognition" on the main menu, click "apply for tax exemptions." you must sign in to the portal with an account with login information.

Once you have logged into your account, the form for claiming exemption to the 80-iac will be displayed on your screen. You must fill out these forms with all the required information about the company, including its address, name, business/industry information, contact details, incorporation date, and pan information. Additionally, as the startup has been recognized by the DPIIT the DPIIT, you must provide the DPIIT number mentioned in the startup India recognition certificate.

After completing all the required information, you can add all the required documents. Such as the documents governing the constitution of the startup (moa or an llp deed) and a copy of the annual accounts. ITR and a, a link, and a pitch deck that explains the concept and the idea behind the creation of this startup.

Once the company's basic information and supporting documents have been uploaded, the final set of information to be included in the application is the authorized signatory's information, including the name of his signature and designation. The authorized signatory is typically one of the directors/ named partners in the company. Chosen to serve this function by the board when it is an entity and partner in the case of an LLP.