Startup Tax Advisory

What Section 80-IAC incentives or reduced tax benefits can Noida or Ghaziabad tech startups assess?

Startups in Noida, Gurgaon and Ghaziabad should assess whether they qualify for Startup India recognition, Section 80-IAC benefits and defensible documentation of innovation costs. Tax Planet helps founders review eligibility, digital-service export structures and compliance evidence before making any claim or relying on a reduced-tax outcome. Assess your Startup Tax Exemption Eligibility on our blog for the latest updates.

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The Problem

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Indian founders often look for a broad US-style R&D credit, but the Indian position is different. The practical issue is usually eligibility, documentation and timing. Poorly documented development costs, incomplete recognition status or weak evidence can lead to rejected claims, notices and lost planning windows.

Our Process

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We review startup recognition, product-development records, development man-hours, service-export contracts, AIS/TIS data and any relevant UAE-India CEPA digital trade considerations. The aim is to make the founder’s innovation-led position supportable, not merely attractive on paper.

The ROI

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By identifying eligible deductions and securing Section 80-IAC status, we help startups maximize their runway. Our process ensures that your “innovation-led” status is a documented fact, providing a defensible position against future scrutiny while supporting strategic growth.

Section 80-IAC Eligibility Checklist

Not a US-style R&D Credit: Section 80-IAC is India’s startup-specific tax holiday under the Income Tax Act – it works differently from the US R&D credit, with its own eligibility criteria, scope and documentation requirements.

What Qualifies a Startup for Section 80-IAC

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DPIIT recognition: The entity must be a recognised “Startup” under the Department for Promotion of Industry and Internal Trade.

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Eligible entity structure: Incorporated as a Private Limited Company or LLP only. Partnership firms and sole proprietorships are not eligible for the Section 80-IAC deduction.

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Incorporation window: Incorporated between 1 April 2016 and 31 March 2030 (window extended in Union Budget 2025-26), and not formed by splitting or reconstructing an existing business.

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Turnover limit: Annual turnover must not exceed ₹100 crore in any financial year since incorporation for the Section 80-IAC deduction specifically.

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Innovation-led activity: Working towards innovation, development or improvement of products, processes or services, or a scalable business model with high potential for employment or wealth creation.

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Inter-Ministerial Board (IMB) approval: DPIIT recognition alone is not sufficient – a separate Form 80-IAC application and IMB Certificate of Eligible Business are required before the deduction can be claimed.

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3-year claim window: The 100% profit deduction can be claimed for any 3 consecutive assessment years within the first 10 years of incorporation – chosen at the startup’s discretion.

Frequently Asked Questions

Noida startups can access specific tax exemptions under Section 80-IAC of the IT Act. TaxPlanet provides tax strategy to document innovation costs for tax optimisation and reduced tax outcomes. We assist firms in reviewing eligibility for startup-specific import duty concessions and export incentives per current government schemes.

No. Eligibility depends on recognised startup status, the nature of innovation, incorporation timing and compliance with the relevant conditions. The first step is a readiness review before any benefit is claimed or presented as available.

Keep development plans, sprint notes, payroll or contractor records, invoices, technical documentation, management approvals and links between expenditure and the product being developed. The evidence should explain what was built, why it mattered and how the cost was incurred.

Not in the same broad way many founders understand the US R&D credit. Indian startups should instead review Startup India recognition, Section 80-IAC and other available schemes with careful documentation.

Exports can affect invoicing, GST treatment, foreign remittance evidence, income recognition and cross-border reporting. The business should make sure contracts, bank receipts and filings tell the same story.

Check recognition status, eligibility period, innovation evidence, ownership conditions, turnover limits, documentation quality and whether the claim aligns with the company’s filings and books.

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