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How Indian Startups Can Pay Zero Income Tax for 3 Years – A Deep Dive

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In a landmark decision to boost innovation, the Government of India has extended one of its most powerful benefits for new businesses — a 100% income tax exemption for three consecutive years.

This tax holiday, offered under Section 80-IAC of the Income Tax Act, is aimed at encouraging the growth of genuine, innovation-led startups by allowing them to reinvest profits into expansion without tax burdens during their critical early years.


What is Section 80-IAC?

Section 80-IAC provides eligible startups a 100% deduction of profits and gains from business for any 3 consecutive assessment years out of 10 years since incorporation. This means:

No income tax on profits
Applicable for 3 years (chosen by the startup)
Effective for businesses incorporated till April 1, 2030

It’s one of the few schemes that provide a direct financial benefit rather than just credit access or subsidies.


What’s New in 2025?

The Union Budget 2025 brought key upgrades:

  • Deadline Extended: The window to qualify has been extended from March 31, 2025 to April 1, 2030
  • Encourages more startups to apply under DPIIT
  • Boosts innovation in sectors like AI, deep tech, agritech, climate tech, and fintech

Who is Eligible?

To avail the tax break, your startup must meet all of the following criteria:

RequirementDetails
Entity TypeMust be a Private Limited Company or LLP
RegistrationMust be recognized by DPIIT under Startup India
Incorporation WindowBetween April 1, 2016 and April 1, 2030
Annual TurnoverMust not exceed ₹100 crore in any financial year
Business NatureMust be working on innovation, development, or improvement of products/services
Not Formed by Split or MergerShould not be formed by splitting up or reconstructing an existing business

Why Is This a Game-Changer?

Startups usually operate on thin margins and need every rupee to build, hire, and expand. This tax relief allows founders to:

  • Reinvest profits without tax burdens
  • Improve investor confidence
  • Scale faster during their most vulnerable years
  • Focus on product-market fit instead of tax liabilities

How to Apply

Here’s a step-by-step guide to claim the tax holiday:

  1. Register on Startup India Portal
  2. Get DPIIT Recognition Certificate
  3. After recognition, apply to CBDT (Central Board of Direct Taxes) for Section 80-IAC approval
  4. Choose any 3 consecutive years in your first 10 years of operations to claim the exemption The benefit is not automatic — you must apply and receive confirmation from CBDT before filing for deductions

Real-World Example

Startup A was incorporated in 2023, registered with DPIIT, and hit ₹4.5 crore turnover in 2024, ₹9 crore in 2025, and ₹15 crore in 2026.

  • It chose FY 2024–26 for tax exemption
  • Filed Section 80-IAC claim
  • Saved nearly ₹2.8 crore in total income tax over those 3 years
  • Reinvested in talent and R&D

Expert Opinions

Nitin Kaushik, Chartered Accountant:
Section 80-IAC is not a loophole — it’s a fully legal benefit designed to nurture the startup ecosystem. If you’re compliant and innovative, there’s no reason to skip this

Priya Desai, VC Investor:
This tax holiday makes Indian startups more attractive to investors. More net profits = better runway and higher valuations


What Happens After 3 Years?

Once the 3-year exemption is used up:

  • Startups are taxed as per regular corporate tax slabs
  • Currently:
    • 25% for startups with turnover < ₹400 crore
    • Or 22% for companies opting out of other exemptions

Planning is key. Use your 3 tax-free years strategically (early growth, product pivots, or major hiring)

Veer Rana

Veer Rana is a seasoned journalist with a sharp eye for current affairs and public policy. With in-depth knowledge in politics, economy, education, and environmental issues, Veer delivers fact-based, insightful content that drives understanding in complex domains. He also covers health and wellness under lifestyle, bringing credible and actionable advice to readers.

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Iran Clears Safe Passage for Indian Ships; LPG Vessel Crosses Strait of Hormuz

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Amid rising tensions in the Middle East, Iran has reportedly allowed Indian ships to safely pass through the strategic Strait of Hormuz. In a significant development, an Indian vessel carrying 40,000 metric tonnes of liquefied petroleum gas (LPG) has successfully crossed the crucial maritime route and is expected to reach the Indian coast within a week.

The vessel, named Shivalik, departed from Bandar Abbas port in Iran and crossed the Strait of Hormuz a few hours ago, according to sources. It is currently being escorted by the Indian Navy as it travels toward India.


Diplomatic Talks Between India and Iran

The safe passage comes after several rounds of diplomatic engagement between India and Iran amid escalating regional tensions.

The latest discussion reportedly took place between Narendra Modi, Prime Minister of India, and Masoud Pezeshkian, the President of Iran. Their conversation focused on maintaining stability in energy supply routes and ensuring safe maritime navigation for Indian ships.

Sources said another Indian vessel is also expected to cross the Strait soon and dock at an Indian port in the coming days.


Impact of Middle East Conflict on Shipping Routes

Tensions in the region intensified following air strikes conducted on February 28 by the United States and Israel against targets in Iran. The conflict raised fears that Iran might block the Strait of Hormuz, one of the world’s most critical oil shipping routes.

The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and is responsible for the transit of a significant portion of global oil and gas shipments. Any disruption in this narrow waterway can severely affect global energy markets.

Reports of restricted access to the strait have already pushed global crude oil prices upward, reflecting concerns about supply disruptions.


Iran Reassures India on Safe Navigation

Earlier in the day, Iran’s Ambassador to India, Mohammad Fathali, reassured that Indian vessels would be allowed to pass through safely.

He stated that India and Iran share strong bilateral relations and common regional interests, adding that the situation would become clear within hours as ships continued to pass through the strait.

Meanwhile, Abdul Majid Hakeem Ilahi, the representative of Iran’s Supreme Leader in India, clarified that Iran has not officially closed the Strait of Hormuz despite the ongoing conflict.

He acknowledged that navigation has become more difficult due to regional tensions but confirmed that several ships are still using the route.


Why the Strait of Hormuz Matters

The Strait of Hormuz is widely considered one of the most important maritime chokepoints in the world. Nearly one-fifth of the global oil supply passes through this narrow passage every day.

For India, the route is crucial because the country imports a large portion of its crude oil and LPG from West Asian nations.

Ensuring uninterrupted access to this sea lane is essential for:

  • Maintaining India’s energy security
  • Stabilizing domestic fuel prices
  • Preventing disruptions in global energy supply chains
Veer Rana

Veer Rana is a seasoned journalist with a sharp eye for current affairs and public policy. With in-depth knowledge in politics, economy, education, and environmental issues, Veer delivers fact-based, insightful content that drives understanding in complex domains. He also covers health and wellness under lifestyle, bringing credible and actionable advice to readers.

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Temperature Expected to Fall in Delhi Over Next Two Days; Rain Likely Today

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Cold conditions have returned to the national capital after rainfall lashed parts of Delhi-NCR on Friday, January 23, bringing a noticeable dip in temperatures and relief from pollution. The mercury slipped below 10°C, marking a sharp turnaround after a brief spell of warmer days earlier this week.

According to the India Meteorological Department (IMD), Delhi is likely to witness a further drop in temperatures over the next two days, with light rain predicted for today as well. The maximum temperature is expected to hover around 20°C, while the minimum may dip to 6°C, intensifying the winter chill.

Rain Brings Clear Skies and Better Air Quality

Friday’s rainfall significantly altered weather conditions across the region. Cool northerly winds swept through the capital, leading to clearer skies and a marked improvement in visibility. Air quality levels also improved, with several monitoring stations recording a drop in pollution indices due to the washout effect of rain.

Meteorologists noted that the rain activity was concentrated mainly in the morning and early afternoon, gradually subsiding by evening.

Delhi Records Wettest January Day in Two Years

Delhi witnessed its first rain of 2026, which also turned out to be the wettest January day in the last two years. IMD data shows that the highest January rainfall on record was logged on January 30, 2023, when the city received 20.4 mm of rain.

On Friday, rainfall between 8:30 am and 5:30 pm was widespread across Delhi-NCR:

  • Ridge: 17.4 mm
  • Palam: 14.0 mm
  • Lodi Road: 13.4 mm
  • Safdarjung: 13.2 mm
  • Ayanagar: 11.5 mm

Most weather stations reported light to moderate rainfall between 8:30 am and 2:30 pm, after which precipitation weakened significantly.

Weather Update for Other North Indian Cities

  • Lucknow (Uttar Pradesh): Light rain is likely in the morning, with a minimum temperature around 10°C.
  • Patna (Bihar): Clear skies are expected, with the minimum temperature settling near 13°C.
  • Jaipur (Rajasthan): The minimum temperature may drop to around 5°C, with partly cloudy conditions likely.

What to Expect Next

IMD officials have indicated that the temperature dip could lead to cold day conditions in isolated pockets of Delhi-NCR. Early morning shallow fog may also develop over the next few days, especially in low-lying areas. Residents have been advised to take precautions against cold weather, particularly during early morning and late-night hours.

While no severe cold wave warning has been issued yet, authorities are monitoring conditions closely as winter tightens its grip once again on north India.

Veer Rana

Veer Rana is a seasoned journalist with a sharp eye for current affairs and public policy. With in-depth knowledge in politics, economy, education, and environmental issues, Veer delivers fact-based, insightful content that drives understanding in complex domains. He also covers health and wellness under lifestyle, bringing credible and actionable advice to readers.

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PM Modi hails Mahayuti’s sweeping win in Maharashtra civic polls, calls it people’s mandate for NDA governance

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Prime Minister Narendra Modi on Friday welcomed the Mahayuti alliance’s decisive victory in the Maharashtra municipal corporation elections, describing it as a clear indication of the deepening bond between the people of the state and the National Democratic Alliance (NDA). The results, covering elections to 29 municipal corporations, have delivered a strong endorsement of the alliance’s governance model and development agenda.

Taking to social media platform X, PM Modi thanked the people of Maharashtra for backing what he termed the NDA’s “pro-people and good governance” agenda. He said the mandate reflected public trust in the alliance’s track record and its vision for the future.

“Thank you Maharashtra! The dynamic people of the state bless the NDA’s agenda of pro-people good governance. This is a vote to add momentum to progress and celebrate the glorious culture the state is associated with,” the prime minister wrote.

Praise for NDA workers and campaign strategy

In a separate post, PM Modi lauded the efforts of NDA karyakartas, crediting them for working tirelessly at the grassroots level and effectively communicating the alliance’s message to voters. He noted that party workers played a crucial role in highlighting development initiatives while countering what he described as misinformation spread by opposition parties.

“They talked about our alliance’s track record, highlighted our vision for the coming times and also effectively countered the lies of the Opposition. My best wishes to them,” he said.

Mahayuti’s dominant performance across civic bodies

The Mahayuti alliance registered a commanding performance in the civic polls, with the Bharatiya Janata Party (BJP) emerging as the single-largest party. The BJP won over 1,300 of the 2,869 seats contested across municipal corporations, reinforcing its organisational strength in urban Maharashtra.

Chief Minister Eknath Shinde-led Shiv Sena finished second within the alliance, securing 394 seats. The Congress surprised many observers by finishing third overall with victories in 315 seats, indicating pockets of resilience despite recent electoral setbacks.

Uddhav Thackeray-led Shiv Sena (UBT) won 149 seats, while the Nationalist Congress Party (NCP), which contested independently on several seats, secured 158 victories. Asaduddin Owaisi’s AIMIM also made notable gains with over 90 seats, while Sharad Pawar’s NCP (SP) won 36 seats. Raj Thackeray’s Maharashtra Navnirman Sena (MNS) managed to secure around 12 seats.

Political significance ahead of key elections

Although the final tally is yet to be officially declared by the Maharashtra State Election Commission, political analysts see the results as a significant morale booster for the Mahayuti government led by Devendra Fadnavis, with Eknath Shinde and Ajit Pawar as deputy chief ministers. The outcome is being viewed as an important indicator of voter sentiment ahead of future state and national-level contests.

The civic poll victory is also expected to strengthen the NDA’s narrative of political stability, development-focused governance, and organisational unity in Maharashtra’s complex political landscape.

Veer Rana

Veer Rana is a seasoned journalist with a sharp eye for current affairs and public policy. With in-depth knowledge in politics, economy, education, and environmental issues, Veer delivers fact-based, insightful content that drives understanding in complex domains. He also covers health and wellness under lifestyle, bringing credible and actionable advice to readers.

Continue Reading

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