Services for clients across India. Applicable state, sector and professional requirements are assessed before an engagement.
Section 80-IAC lets an approved startup take a 100% deduction on profits for three chosen years in its first ten — but the gate is an inter-ministerial approval that reads applications sceptically, and the choice of years is a tax-planning decision, not a formality. Both deserve real work.
When this service is typically required
- DPIIT recognition exists and profitability is visible — recognition first
- The IMB application needs an innovation case that survives scrutiny
- Choosing WHICH three years to claim needs modelling against projections
- An earlier IMB application was rejected and a stronger case may exist
Indicative scope
- Eligibility check: incorporation window, recognition status, entity form
- IMB application: innovation/employment/wealth-creation case with evidence
- Financial modelling: optimal selection of the three deduction years
- Claim mechanics in the return, with the documentation trail
Key points at a glance
| Item | Position |
|---|---|
| Benefit | 100% deduction of eligible profits for any 3 consecutive-choice years within the first 10 |
| Gate | DPIIT recognition + IMB (inter-ministerial board) approval |
| Window | Incorporation up to the currently notified cutoff (extended by recent Finance Acts) |
| Planning | Claim years are chosen — pick them where profits actually are |
Deliverables
The filed IMB application with annexures, approval on grant, the year-selection model, and the claim-support file for each deduction year's return.
Information and documents generally required
Recognition certificate, financials and projections, the product/innovation evidence pack, and shareholding history (eligibility tests look at it).
Engagement process
Client responsibilities, assumptions and reliance
The innovation case must be true and evidenced — the drafting sharpens reality, never invents it. IMB outcomes and timelines are the board's.
Scope exclusions
MAT/AMT interactions and group structuring advice beyond the claim (available under tax advisory); no approval or outcome is assured by anyone.
Frequently asked questions
We have recognition — is approval automatic?
No — the IMB grant is a separate, evaluative decision with a meaningful rejection rate for thin applications. The case file is the product here.
When should loss-making startups apply?
Approval can precede profits; claiming waits for them. Applying while the innovation story is freshest often makes the strongest file — the model then parks the claim years for when profits arrive.
Does the deduction cover all income?
Eligible business profits per the section's terms — the claim file computes what qualifies rather than assuming everything does.
What are our chances?
A written honest assessment comes before fees — and no professional can promise an IMB outcome; be wary of any who does.
The applicable scope, documentation, professional responsibilities and timelines are agreed in an engagement letter before commencement.
DPIIT RecognitionFinancial ModellingIncome Tax ComplianceRequest a Scope DiscussionThis page describes the service in general terms as on 6 August 2026 and is not professional advice or an assurance of any outcome. Registrations, filings, refunds and departmental outcomes depend on facts and the concerned authority. Figures and due dates change; verify current positions before acting.
| Compliance | Due | Note |
|---|---|---|
| FLA return (RBI) | 15 July (annual) | All entities with FDI/ODI on books |
| FC-GPR | 30 days from allotment | For fresh foreign investment |
| Valuation report (Rule 11UA / FEMA) | Before issue price is fixed | Method and valuer depend on route |
| ESOP: board/valuation/PAS-3 chain | Event-based | Perquisite TDS on exercise |
| DPIIT recognition | Anytime (before benefits) | Needed for 80-IAC and angel-tax relief |
Dates as generally applicable on 15 July 2026; extensions/notifications can change them — confirm current dates before relying.