Startup India Registration in Hyderabad: The Benefits Worth Claiming
DPIIT-recognised in Hyderabad — now what? The Startup India benefits worth claiming, from the 3-year 80-IAC tax holiday to the abolition of angel tax, explained by a local CA firm.
Getting DPIIT-recognised is step one. The real question every founder asks next is: what do I actually get out of it? Here are the benefits worth claiming — and the ones that changed recently.
The benefits at a glance
| Benefit | What it means for you |
|---|---|
| Section 80-IAC tax holiday | 100% income-tax exemption on profits for 3 consecutive years out of your first 10 |
| Angel tax — now abolished | Angel tax under Section 56(2)(viib) has been removed for all investors, easing fundraising |
| IPR fast-tracking | Faster patent and trademark processing, with an 80% rebate on patent filing fees |
| Self-certification | Self-certify compliance under several labour and environment laws |
| Public procurement | Exemption from prior-experience and earnest-money requirements in government tenders |
| Easier winding up | A faster exit route for startups |
The big one: the 3-year tax holiday (Section 80-IAC)
An eligible startup can claim 100% deduction of its profits for any 3 consecutive years out of its first 10. To qualify, your entity must be a company or LLP, incorporated before 31 March 2030, with turnover under ₹100 crore — and it needs a separate certificate from the Inter-Ministerial Board on top of DPIIT recognition. (Confirm current eligibility and the incorporation window before relying on it.)
What changed: angel tax is gone
For years, startups worried about angel tax on the premium at which they raised funds. That provision — Section 56(2)(viib) — has now been abolished for all investors, which materially simplifies raising money. A genuine relief for early-stage founders.
Who can claim all this?
You need DPIIT recognition first — it is the gateway to every benefit above. If you are not yet recognised, start with our guide to DPIIT registration in Hyderabad.
FAQ
Do all DPIIT-recognised startups automatically get the tax holiday? No. The 80-IAC tax holiday needs a separate approval from the Inter-Ministerial Board, over and above DPIIT recognition.
Is angel tax really gone? Yes — it has been abolished for all classes of investors.
Can an LLP claim the 80-IAC benefit? Yes, an LLP or a company can, subject to the eligibility conditions.
Does recognition help with funding? Indirectly — investors value the recognition, and the removal of angel tax makes the paperwork simpler.
Want to claim every benefit your startup is entitled to? ComplianceKart handles DPIIT recognition and 80-IAC certification for Hyderabad startups. Call or WhatsApp +91 99595 36391.
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