Inter-Ministerial Board (IMB)
The government committee that evaluates and approves Section 80-IAC tax holiday applications. DPIIT recognition is a prerequisite — IMB approval is a separate, substantive process.
The Inter-Ministerial Board (IMB) is the government committee responsible for evaluating and approving applications for the Section 80-IAC income tax holiday. It comprises representatives from three bodies: the Department for Promotion of Industry and Internal Trade (DPIIT), the Department of Revenue (Ministry of Finance), and the Ministry of MSME.
Who it applies to
- DPIIT-recognised startups that have applied for the 3-year profit tax deduction under Section 80-IAC
- Companies and LLPs only — registered partnership firms cannot apply
- The application is made through the Startup India Hub portal after DPIIT recognition is in place
What you get
An IMB approval order certifies the company as an eligible startup under Section 80-IAC. With this order, the company can claim a 100% deduction on profits for any three consecutive assessment years within the first ten from incorporation — effectively a zero-income-tax window during those years.
What most founders miss
The IMB process is substantive, not administrative. Unlike DPIIT recognition — which is largely self-certified and near-automatic — the IMB evaluates the business for genuine innovation. A well-functioning SAAS business built on standard platforms, a trading company, or a traditional service firm without technology differentiation may be declined. The application requires a clear articulation of what is novel, what IP exists or is in development, and why the business model is not merely replicative.
Apply well before you need the deduction. Processing takes 3–6 months, and the order is required before you can claim the deduction in a tax return. If you plan to be profitable in FY 2026-27 and want to claim 80-IAC for that year, the IMB application should be filed in mid-2025 at the latest.
The IMB order specifies an effective date. Profits earned before this date cannot be covered by the deduction, even if the company was technically eligible from incorporation. The date of the IMB order bounds the earliest year you can claim.
See also
- Section 80-IAC — the tax holiday the IMB approves access to
- Eligible Startup — the status conferred by IMB approval
- DPIIT Recognition — the required first step before approaching the IMB
- Startup India — the programme framework within which the IMB operates
Find government schemes your startup qualifies for — free in 3 minutes.
Check my eligibility →