Startup India Wizard

DPIIT recognition, angel tax and Section 80-IAC planning from the approved configuration.

Enter turnover
CA review

Whether all 4 entity types (Pvt Ltd, LLP, OPC, Section 8) qualify for DPIIT recognition — OPC (One Person Company) was added as eligible; confirm current DPIIT notification whether OPC is included. Also confirm: whether the ₹100Cr turnover limit is gross receipts or net revenues — DPIIT uses 'annual turnover' per Companies Act definition.

Benefits of recognition

  • Exemption from angel tax u/s 56(2)(viib) — CBDT Notification 6/2023
  • Eligibility to apply for 80-IAC tax holiday (requires additional IMB approval)
  • Compliance benefits: self-certification for 6 labour laws, 3 environment laws
  • IPO listing benefits under SEBI ICDR (25% public offer reduced to 10% for eligible startups)
  • Fast-track patent examination (80% discount on fees)

Process

  1. Register on startupindia.gov.in
  2. Submit online application with entity incorporation/registration documents
  3. Declaration of innovation/technology credentials
  4. DPIIT grants recognition certificate (DIPP registration number)
CA review

Startup India eligibility and angel tax exemption rules have changed multiple times. Finance Act 2024 changes to angel tax (foreign investor exemption/repeal), the incorporation date cutoff for 80-IAC, and IMB certification backlogs are areas requiring current CA advice. Do not rely solely on this tool — verify with CA and startupindia.gov.in official notifications.

Statutory basis: ITA 1961 ss.56(2)(viib), 80-IAC, 115BAB; DPIIT Notification G.S.R. 127(E) dated 19-Feb-2019 (as amended); CBDT Notification 6/2023 dated 24-May-2023 (s.56(2)(viib) angel-tax exemption for DPIIT-recognised startups); Finance Act 2025

Common questions

Startup India recognition, statute-cited.

Who qualifies as a startup under Startup India?+

Under Notification G.S.R. 127(E) dated 19 February 2019 (as amended), an entity is a startup if it is incorporated or registered not earlier than 10 years ago, with turnover not exceeding ₹100 crore in any financial year, working towards innovation or improvement of products, processes or services, and not formed by splitting or reconstructing an existing business. This validator applies those tests before you file.

What does DPIIT recognition actually give you?+

DPIIT recognition unlocks three tax benefits: exemption from angel tax on shares issued at a premium (s.56(2)(viib) read with the G.S.R. 127(E) notification), the 3-year tax holiday under s.80-IAC, and capital-gains exemption on eligible transfers under s.54GB. Note that from AY 2025-26 the angel-tax charge itself, s.56(2)(viib), has been made inapplicable by the Finance (No. 2) Act 2024 — premium issues are no longer taxed regardless of recognition. It also gives access to the Startup India funds and procurement preference.

What is the angel tax exemption for recognised startups?+

Shares issued by a DPIIT-recognised startup at a premium to a resident are exempt from s.56(2)(viib) of the Income-tax Act 1961, subject to an aggregate limit of ₹25 crore over the startup's life (raised by the Finance Act 2023). From AY 2025-26, s.56(2)(viib) is inapplicable altogether (Finance (No. 2) Act 2024), so this exemption is academic for new share issues. The exemption also covers shares from non-residents and certain funds under the amended rules.

What is the 80-IAC tax holiday and who gets it?+

Section 80-IAC of the Income-tax Act 1961 gives an eligible company or LLP a 100% deduction of profits for 3 consecutive assessment years out of the first 10 years from incorporation, provided it holds DPIIT recognition and an Inter-Ministerial Board certificate (the incorporation window runs to 1 April 2030 after the Finance Act 2025 extension). The validator checks both certificates and your incorporation year before computing the saving.

How long is DPIIT recognition valid?+

Recognition is valid for the period the entity continues to satisfy the startup definition — roughly 10 years from incorporation, subject to the turnover cap of ₹100 crore in any financial year. Once turnover breaches the cap, recognition lapses and the tax benefits stop applying from that year.