Schedule 80-IAC –Deduction to an Eligible Startup AY 2026-27
‘Schedule 80-IAC’ in the Income Tax Return (ITR) form is meant for assessees claiming deduction under Section 80-IAC of the Income-tax Act, 1961. This section allows eligible startups to claim a deduction of 100% of profits and gains derived from the eligible business. The startup must be incorporated on or after 1st April 2016 but before 1st April 2030 and should be recognised by the Department for Promotion of Industry and Internal Trade (DPIIT).
The deduction can be claimed for any three consecutive assessment years out of 10 years beginning from the year of incorporation.
This schedule requires details such as the date of incorporation, nature of business, certificate number issued by the Inter-Ministerial Board of Certification, the first assessment year in which the deduction was claimed and the amount of deduction claimed for the current assessment year.
- Section 80-IACof Income-tax Act, 1961
An eligible start-up (company or LLP) can claim deduction under Section 80-IAC for the profit and gains arising from eligible business. Deduction can be claimed up to 100% of the profits and gains derived in 3 consecutive years out of the 10 assessment years beginning from the year of incorporation. Eligible start-up must be incorporated on or after 01-04-2016 but before 01-04-2030.
This schedule applies to ITR-5 and ITR-6.