Section 80-IAC startup tax holiday: the eligibility checklist after the May 2026 DPIIT notification

The Department for Promotion of Industry and Internal Trade (DPIIT) issued a revised notification on 12 May 2026 re-stating the eligibility framework for the Section 80-IAC startup tax holiday following the Budget 2026 extension of the incorporation cut-off date to 31 March 2030.

The five eligibility tests are: incorporation as a Private Limited Company or LLP between 1 April 2016 and 31 March 2030; total turnover in any financial year not exceeding 100 crore; the entity working towards innovation; a valid DPIIT recognition certificate; and Inter-Ministerial Board approval for the Section 80-IAC tax holiday.

Section 80-IAC allows 100% deduction of profits and gains from the eligible business for any three consecutive assessment years out of the first ten years from incorporation, at the taxpayer option.

KAMRIT Direct Tax desk can run a tax-holiday eligibility diagnostic and prepare the IMB filing as part of the post-incorporation compliance package.