Startup India & DPIIT Recognition Advisory — REXERA
STARTUP UPDATE
Section 80-IAC Tax Exemption Filing Open for Eligible DPIIT Startups • Startup India Seed Fund Scheme (SISFS) up to ₹50 Lakhs Facilitation
DPIIT RECOGNITION & TAX HOLIDAY

Unlock a 3-Year Tax Holiday Under Startup India

End-to-end advisory for DPIIT Startup Recognition, Section 80-IAC 3-year 100% tax holiday, Section 56(2)(viib) angel tax exemption, and the Seed Fund Scheme (SISFS).

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Recognition Snapshot

Built for Early-Stage Founders

We handle your DPIIT application, Form 2 declaration, and investor-ready documentation so recognition doesn't slow down your raise.

100%
Profit Tax Exemption (80-IAC)
0%
Angel Tax Under Section 56(2)(viib)
Tax Holiday (80-IAC) 100% Tax Free (3 Yrs)
Seed Grant (SISFS) Up to ₹50.00 Lakhs
Angel Tax Exemption Section 56(2)(viib)
Patent & IPR Rebate 80% Government Rebate
Entity Age Ceiling Up to 10 Years Vintage
Turnover Limit ₹100 Crore p.a.
STATUTORY FISCAL ADVANTAGES

Key Benefits of DPIIT Recognized Startups

Under the Startup India initiative, certified entities access unique fiscal and operational exemptions designed to accelerate high-growth ventures.

100% Tax Holiday

Section 80-IAC 3-Year 100% Tax Holiday

Eligible DPIIT startups can claim a 100% deduction of profits and gains for 3 consecutive assessment years out of the first 10 years since incorporation, saving substantial capital for reinvestment.

Zero Tax Friction

Angel Tax Exemption (Sec 56(2)(viib))

Complete exemption on investments received above Fair Market Value (FMV) from resident investors, angel networks, and funds, eliminating costly tax friction during fundraising rounds.

Up to ₹70 Lakhs

Startup India Seed Fund Scheme (SISFS)

Access financial assistance up to ₹20 Lakhs as grant for proof of concept, prototype development, and product trials, plus up to ₹50 Lakhs for market entry and commercialization via convertible debentures.

80% Fee Rebate

IPR Fast-Tracking & 80% Rebate

Government scheme provides 80% fee rebate on patent filings and 50% rebate on trademark applications, with expedited examination by panel facilitators to secure your intellectual property rapidly.

Zero EMD / Relaxed

Relaxed Public Procurement (GeM Portal)

Central Ministries and PSUs exempt recognized startups from "Prior Turnover" and "Prior Experience" criteria in government tenders, alongside exemption from Earnest Money Deposit (EMD).

5 Years Compliance

Self-Certification for 9 Labour & Env Laws

Startups can self-certify compliance under 6 Labour Laws and 3 Environmental Laws for 5 years from incorporation, ensuring zero routine inspections from regulatory inspectors.

OFFICIAL ELIGIBILITY PARAMETERS

Who Qualifies as a DPIIT Startup?

Check your venture's parameters against the official Ministry of Commerce & Industry gazette notification.

01 Legal Structure

1. Entity Structure

Must be incorporated as a Private Limited Company, Registered Partnership Firm, or Limited Liability Partnership (LLP). Sole proprietorships do not qualify.

Pvt Ltd • LLP • Registered Partnership
02 Entity Age

2. Age of Entity

The entity must not have exceeded 10 years from the date of its incorporation or registration.

Within 10 Years from Incorporation
03 Revenue Ceiling

3. Turnover Limit

Turnover for any of the financial years since incorporation has not exceeded ₹100 Crore.

Annual Turnover ≤ ₹100 Crore
04 Core Mandate

4. Innovation & Scalability

The entity must be working towards innovation, development or improvement of products, processes or services, with high potential of employment generation or wealth creation.

Commercial Scalability & Innovation
05 Independence

5. Original Entity

The business must not be formed by splitting up or reconstruction of an existing business already in operation.

Brand New & Standalone Entity
06 Tax Holiday Rule

6. IMB Tax Holiday Criteria

For 80-IAC tax exemption, the company must be incorporated between April 1, 2016 and March 31, 2025, and present novel, patented, or breakthrough intellectual property to the IMB board.

Inc: Apr 2016 – Mar 2025 + Novel IP
ADVISORY ROADMAP

Our Startup India Certification Journey

From structuring your pitch presentation to defending your case before government panels.

01

Innovation & Model Assessment

We review your product architecture, business canvas, IP roadmap, and commercial scalability to frame a compelling innovation narrative.

Phase 1: Architecture Review
02

DPIIT Application & Documentation

We draft the comprehensive startup write-up, pitch presentation, video demonstration, and file the official portal dossier.

Phase 2: Dossier Submission
03

Section 80-IAC & Angel Tax Filings

Our corporate tax partners prepare Form 1 and Form 2 dossiers with chartered accountant certifications and valuation reports for IMB presentation.

Phase 3: Tax Board Defense
04

SISFS & Seed Grant Submissions

We match your startup with eligible government-backed incubators under SISFS and submit detailed milestone-based grant proposals.

Phase 4: Grant Facilitation
Statutory Regulatory Disclaimer

REXERA is an independent professional consulting firm. We are not DPIIT, the Inter-Ministerial Board, or Startup India. DPIIT recognition and Section 80-IAC tax certificates are granted strictly at the sole discretion of the Department for Promotion of Industry and Internal Trade (DPIIT) and the CBDT upon verification of eligibility.

DPIIT & Section 80-IAC Eligibility Criteria

✓
Incorporation Status: Registered as a Private Limited Company or Limited Liability Partnership (LLP) in India within the last 10 years.
✓
Innovation & Scalability: Working towards innovation, development, or improvement of products, processes, or scalable business models with high employment potential.
!
Section 80-IAC Clearance: 100% income tax exemption requires approval from the Inter-Ministerial Board (IMB) following DPIIT recognition.
×
Ineligible Entities: Entities formed by splitting up or reconstruction of an existing business, or sole proprietorships / unregistered partnerships.

Startup India Recognition & 80-IAC Roadmap

How REXERA prepares your IMB pitch deck and DPIIT certifications.

1
Entity Audit
Verify Pvt Ltd / LLP incorporation date & shareholding cap table.
2
DPIIT Portal Lodgement
Filing innovation brief, pitch deck, website URL & patent linkages.
3
DPIIT Certificate Issue
Obtain official Startup Recognition Certificate with DIPP number.
4
Section 56 Exemption
File Form 2 declaration for complete Angel Tax exemption.
5
80-IAC IMB Pitch Deck
Prepare CA-certified financial model & IMB presentation deck.
6
3-Year 100% Tax Holiday
Inter-Ministerial Board approval & CBDT tax exemption gazette.
DOCUMENTATION DOSSIER

Required Documents for DPIIT & 80-IAC

REXERA audits and prepares your complete startup dossier to eliminate processing delays and objections from the IMB panel.

COI, MOA & AOA / LLP Agreement

Certificate of Incorporation from MCA along with Memorandum and Articles of Association demonstrating innovation mandate.

Pitch Deck & Video Walkthrough

Comprehensive slide deck showcasing problem statement, unique value proposition, target market, revenue model, and product demo video.

Patents, Trademarks & IPR

Provisional or granted patent application numbers, trademark certificates, design registrations, and proprietary technology architecture.

Audited Financials & ITR (If Active)

Audited balance sheets, P&L statements, and ITR acknowledgments since inception showing annual revenue within ₹100 Crore.

Founder Profiles & Shareholding

Director Identification Numbers (DIN), PAN, Aadhaar, founder resumes, and cap table detailing resident vs foreign shareholding.

Form 1 / Form 2 Declarations

Certified declarations under Section 80-IAC and Section 56(2)(viib) with chartered accountant net worth certificates and valuation reports.

FREQUENTLY ASKED QUESTIONS

Common Questions About Startup India & 80-IAC

Everything you need to know about DPIIT eligibility, tax holiday approval rates, and angel tax relief.

DPIIT Startup Recognition provides official startup status, IPR fee rebates (80%), self-certification for labour laws, and GeM procurement relaxations. Section 80-IAC is an additional advanced certificate approved by the Inter-Ministerial Board (IMB) that grants a 100% tax holiday on profits for 3 consecutive years out of 10 years.

Only Private Limited Companies, Limited Liability Partnerships (LLP), and Registered Partnership Firms incorporated within the last 10 years qualify. Sole Proprietorships and Unregistered Partnerships are not eligible for DPIIT recognition.

Upon securing DPIIT recognition, startups can file Form 2 on the Startup India portal. This provides 100% exemption on shares issued at a premium above Fair Market Value (FMV) up to an aggregate paid-up share capital and share premium of ₹25 Crore.

DPIIT Recognition Certificate is generally processed within 3 to 7 working days once the application and innovation deck are filed. Section 80-IAC IMB approval involves scrutiny by government technical committees and typically takes 4 to 8 weeks.

TAKE ACTION TODAY

Certify Your Startup for Maximum Tax & Funding Benefits

Speak with our startup advisory partners today to evaluate your venture's eligibility for DPIIT and IMB exemptions.

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