DPIIT Startup ITR Filing AY 2026-27: Complete Guide

A DPIIT-recognised private limited company must file its income tax return even if it has no revenue, has incurred a loss, or has claimed the Section 80-IAC tax holiday. DPIIT recognition does not provide an income tax filing exemption. For AY 2026-27, most such companies will file ITR-6, complete their statutory and tax audits, report eligible deductions correctly, and meet the applicable filing deadlines.

This guide explains the filing of a private company recognised by DPIIT in AY 2026-27, including ITR-6 filing, tax audit, Section 80-IAC, advance tax, Minimum Alternate Tax, documents, and a practical compliance checklist.

DPIIT Recognised Private Limited Company ITR Filing AY 2026-27

A private limited company recognised by the Department for Promotion of Industry and Internal Trade, or DPIIT, remains a separate taxable person under the Income-tax Act, 1961.

The company must file an income tax return for FY 2025-26, relevant to AY 2026-27, when it:

• Earns taxable income or incurs a business loss.
• Has received share capital, loans, grants, or other business receipts.
• Wants to carry forward business or capital losses.
• Wants to claim deductions such as Section 80-IAC.
• Is required to file a return because it is a company incorporated under the Companies Act.
• Has tax deducted at source, advance tax, or self-assessment tax to claim or reconcile.

Every company must file an income tax return, regardless of its income or loss. A nil-income or loss-making startup cannot skip the return merely because it has DPIIT recognition.

The Income Tax Department provides the applicable return forms and e-filing services through its official income tax e-filing portal.

Which ITR Form Applies to a DPIIT Recognised Private Company?

ITR-6 filing for private company recognised by DPIIT

A private limited company will generally use ITR-6 for AY 2026-27. ITR-6 applies to companies that are not claiming exemption under specified provisions such as Sections 11 or 10(23C).

A DPIIT-recognised startup normally files ITR-6 where it:

• Operates a technology, manufacturing, services, or other business.
• Claims business expenditure or reports business losses.
• Claims Section 80-IAC.
• Has income from interest, investments, or other sources along with business income.
• Has opted for the normal corporate tax regime or Section 115BAA.

The company may need to file ITR-7 instead if it claims exemption under provisions applicable to charitable or specified exempt entities. DPIIT recognition by itself does not require ITR-7.

Digital signing requirement

A company must file its return electronically using the digital signature of the authorised signatory. The digital signature should be valid, registered on the income tax portal, and linked to the company’s PAN.

The company should also ensure that:

• Its PAN and TAN details are active.
• The authorised signatory is registered on the e-filing portal.
• The company’s bank account is validated.
• The company’s books, audit reports, and return data reconcile before submission.

Due Date for Private Limited Company Tax Return AY 2026-27

Standard due date

For a company that is not subject to transfer pricing reporting, the statutory due date for the income tax return for AY 2026-27 is generally:

• 31 October 2026 for the company’s ITR-6.
• 30 September 2026 for the tax audit report, where tax audit applies.

The return due date for a company is generally 31 October following the end of the relevant financial year under Section 139(1). The CBDT may issue a notification extending a due date in specific circumstances. Companies should verify the applicable date on the Income Tax Department’s tax calendar.

For a company with international transactions or specified domestic transactions requiring a transfer pricing report, the return due date is generally 30 November 2026, subject to the applicable law and CBDT notifications.

Consequences of late filing

Late filing can create several problems for a startup:

• Late filing fee under Section 234F.
• Interest under Sections 234A, 234B, and 234C, where applicable.
• Loss of the ability to carry forward certain business and capital losses.
• Possible loss of deduction under Section 80-IAC because Section 80AC requires timely filing for specified Chapter VI-A deductions.
• Delay in receiving an income tax refund.
• Difficulty during due diligence, fundraising, bank financing, or government applications.

A loss-making startup should therefore file its return by the due date even when no tax is payable.

Tax Audit Filing Requirements for DPIIT Recognised Startup

DPIIT recognition does not automatically make a startup exempt from tax audit. Tax audit depends on Section 44AB and the company’s business receipts, professional receipts, and cash transaction levels.

When does tax audit apply?

For a business, tax audit generally applies when turnover or gross receipts exceed ₹1 crore during the financial year. The threshold increases to ₹10 crore where:

• Aggregate cash receipts do not exceed 5% of total receipts, and
• Aggregate cash payments do not exceed 5% of total payments.

For a profession, the standard gross receipt threshold is generally ₹50 lakh. A higher threshold of ₹75 lakh may apply where cash receipts do not exceed 5% of total receipts.

A private company must also complete its audit under the Companies Act. However, a statutory audit under company law and a tax audit under Section 44AB are different compliance requirements.

Which tax audit form applies?

Where the company’s accounts are already audited under another law, the tax auditor generally furnishes:

• Form 3CA, audit report where accounts are audited under another law.
• Form 3CD, statement of particulars required under Section 44AB.

The tax auditor files the report electronically. The company must approve or accept the report through its income tax e-filing account before submitting the ITR.

Important tax audit checks

The auditor and management should reconcile:

• Turnover reported in books, GST returns, and ITR.
• Input tax credit and GST revenue treatment.
• TDS receivable and Form 26AS or AIS.
• Related-party payments under Section 40A(2).
• Disallowances under Section 43B.
• Employee contribution compliance under Sections 36(1)(va) and 43B.
• Cash receipts and payments.
• Share application money and unsecured loans.
• Depreciation under the Income-tax Rules.
• Expenses incurred for research and development.
• Payments to directors, founders, and group entities.

Section 80-IAC Tax Exemption Filing for Eligible Startup AY 2026-27

Section 80-IAC provides a deduction of 100% of eligible profits and gains for three consecutive assessment years out of ten years from the year of incorporation, subject to statutory conditions.

The benefit is not available merely because a company holds a DPIIT recognition certificate.

Key conditions for Section 80-IAC

An eligible startup generally must satisfy conditions such as:

• It is incorporated within the period specified under Section 80-IAC.
• It is engaged in innovation, development, improvement, or a scalable business model with potential for employment generation or wealth creation.
• Its turnover does not exceed the prescribed limit of ₹100 crore in the relevant financial year.
• It obtains the required eligibility certification from the Inter-Ministerial Board, where applicable.
• It is not formed by splitting up or reconstruction of an existing business, subject to statutory exceptions.
• It is not formed by transferring previously used plant or machinery beyond permitted limits.

The Startup India portal explains the broad framework for DPIIT-recognised startups and related government benefits.

DPIIT recognition versus 80-IAC approval

These are separate steps:

1. DPIIT recognition confirms that the entity qualifies as a recognised startup under the applicable startup framework.
2. Section 80-IAC eligibility approval is required to claim the profit-linked income tax deduction.

A startup should not claim Section 80-IAC solely on the basis of its DPIIT certificate. It should retain the certificate or approval supporting the Section 80-IAC claim and report the deduction in the correct schedule of ITR-6.

Timely return is essential

The company should file its AY 2026-27 return by the applicable due date if it wants to claim the Section 80-IAC deduction. Section 80AC can restrict specified deductions where the return is not filed within the prescribed time.

Example

Suppose a DPIIT-recognised private company has:

• Eligible business profit: ₹40,00,000
• Eligible Section 80-IAC deduction: ₹40,00,000
• Other taxable income: ₹2,00,000

If all conditions are satisfied and the company has selected the tax regime that permits the deduction, it may claim the eligible deduction against the qualifying business profit. The remaining taxable income may still be subject to tax.

Corporate Tax Regime and Section 80-IAC

A startup should compare the normal tax regime with Section 115BAA before filing its return.

Section 115BAA

A domestic company can generally opt for a concessional tax rate of 22%, plus applicable surcharge and health and education cess, under Section 115BAA. However, the company must forgo several deductions and incentives.

A crucial point for startups is that Section 80-IAC deduction is generally not available when the company computes income under Section 115BAA, because Section 115BAA restricts specified deductions under Chapter VI-A.

The company should therefore calculate tax under both options:

• Normal provisions with eligible deductions, including Section 80-IAC where available.
• Section 115BAA at the concessional rate without deductions that the section disallows.

A startup with substantial eligible profits may find the normal regime more beneficial during its Section 80-IAC holiday period. A loss-making startup may prefer a different approach depending on future profitability, MAT exposure, and the availability of deductions.

The company should document its tax regime decision and check whether the option has been exercised correctly in the prescribed form and return.

Minimum Alternate Tax Applicability to DPIIT Recognised Private Company

Does MAT apply?

Minimum Alternate Tax, or MAT, is generally calculated at 15% of book profit, plus applicable surcharge and cess, where the normal income tax payable is lower than the MAT liability.

DPIIT recognition does not automatically exempt a private company from MAT.

MAT may be relevant where:

• The company reports book profit but claims substantial deductions under the normal provisions.
• The company claims Section 80-IAC under the normal regime.
• The normal tax liability falls below the prescribed percentage of book profit.

However, companies opting for Section 115BAA or Section 115BAB are generally outside MAT under the specified provisions. This is another reason to compare the tax cost carefully before choosing the concessional regime.

The company should prepare:

• Profit as per the audited statement of profit and loss.
• MAT adjustments under Section 115JB.
• Normal tax computation.
• MAT credit position, where relevant.
• Impact of Section 80-IAC and other deductions.

The Income Tax Department’s tax laws section contains the statutory provisions and updates relevant to corporate tax and MAT.

Advance Tax Payment for Private Limited Company AY 2026-27

A company must pay advance tax when its estimated tax liability for FY 2025-26 is ₹10,000 or more, after reducing eligible tax deducted or collected at source.

The usual instalment schedule is:

Instalment	Cumulative amount payable
By 15 June 2025	15%
By 15 September 2025	45%
By 15 December 2025	75%
By 15 March 2026	100%

A company following the presumptive taxation provisions for eligible businesses may have a different payment rule. Most private limited startups do not use this option.

How startups should estimate advance tax

The finance team should update the estimate after every quarter by considering:

• Revenue invoiced and revenue recognised.
• Interest income on fixed deposits or surplus funds.
• TDS receivable.
• Payroll and contractor costs.
• Research and development expenditure.
• Depreciation and asset purchases.
• Section 80-IAC eligibility.
• MAT liability.
• Losses brought forward.

If the startup expects a loss or has a valid Section 80-IAC deduction, it may not have an advance tax liability. It should still reconcile TDS and advance tax balances before filing ITR-6.

DPIIT Startup Income Tax Compliance Checklist AY 2026-27

Use the following checklist before filing:

Corporate and registration records

• Certificate of incorporation.
• PAN and TAN.
• DPIIT recognition certificate.
• Section 80-IAC approval or eligibility certificate, if claiming the deduction.
• Memorandum and Articles of Association.
• Details of authorised signatory.
• Registered office and bank account details.

Accounting and audit records

• Audited financial statements.
• Trial balance and general ledger.
• Profit and loss account and balance sheet.
• Fixed asset register.
• Depreciation working.
• Details of loans, investments, and share capital.
• Related-party transaction details.
• Statutory audit report.
• Tax audit report in Form 3CA and Form 3CD, where applicable.

Tax records

• Draft and final tax computation.
• ITR-6 working.
• Form 26AS.
• Annual Information Statement.
• Taxpayer Information Summary.
• TDS certificates in Form 16A.
• Advance tax challans.
• Self-assessment tax challan, if applicable.
• GST returns and turnover reconciliation.
• Details of brought-forward losses and unabsorbed depreciation.

Section 80-IAC records

• Incorporation date.
• Turnover calculation.
• Nature of innovative or scalable business.
• Eligible profit computation.
• Assessment years for which the three-year deduction is claimed.
• Inter-Ministerial Board approval or other prescribed supporting documents.
• Separate working for eligible and non-eligible income.

Practical Filing Process for ITR-6

The company can follow these steps:

1. Finalise the books for FY 2025-26.
2. Complete the Companies Act audit.
3. Determine whether Section 44AB tax audit applies.
4. File and approve the tax audit report, if required.
5. Compute income under the normal regime and applicable concessional regime.
6. Calculate Section 80-IAC, MAT, depreciation, and loss carry-forward positions.
7. Reconcile TDS, GST turnover, bank receipts, and financial statements.
8. Complete the ITR-6 utility on the income tax portal.
9. Upload the return using the company’s digital signature.
10. Verify the acknowledgement and preserve the filed return, computation, audit reports, and supporting records.

Common Questions About DPIIT Startup ITR Filing

Is ITR filing compulsory for a DPIIT-recognised startup with no income?

Yes. A private limited company must file its income tax return even if it has no taxable income or has incurred a loss.

Can a startup claim Section 80-IAC without filing ITR-6?

No. The deduction must be claimed in the income tax return, and timely filing conditions must be satisfied. DPIIT recognition alone is not sufficient.

Does DPIIT recognition remove the need for tax audit?

No. Tax audit depends on Section 44AB and the company’s turnover, receipts, payments, and other applicable conditions.

Can a startup file ITR-6 after the due date?

It may be able to file a belated return, but late filing can result in fees, interest, and loss of certain deductions or loss carry-forward benefits. Timely filing is particularly important where the company claims Section 80-IAC or reports losses.

Is GST registration enough to prove turnover for income tax?

No. GST returns are important supporting records, but income tax turnover must reconcile with books of account, invoices, revenue recognition rules, credit notes, advances, and other accounting records.

Final Summary

For the filing of a private company recognised by DPIIT in AY 2026-27, the company should normally submit ITR-6, complete tax audit requirements where applicable, evaluate the normal regime against Section 115BAA, and calculate MAT exposure. It should claim Section 80-IAC only when it holds the required eligibility approval and satisfies all statutory conditions.

Maintain the DPIIT certificate, audited accounts, tax audit report, GST and TDS reconciliations, advance tax details, and Section 80-IAC working in one compliance file. Completing this DPIIT recognised private limited company ITR filing for AY 2026-27 before the applicable due date will help protect loss carry-forward, deductions, refunds, and future fundraising or due diligence processes.