In a move that reinforces the government’s commitment to nurturing the country’s entrepreneurial spirit, the Department for Promotion of Industry and Internal Trade (DPIIT) has granted income tax exemptions to 187 startups under the revamped Section 80-IAC of the Income Tax Act. This development marks another milestone in India’s journey to becoming a global hub for innovation and startup activity.
The approvals were finalized during the 80th meeting of the Inter-Ministerial Board (IMB), held on April 30, 2025. Under this provision, eligible startups can avail a 100% income tax deduction on profits for any three consecutive years within the first ten years of incorporation. This initiative is especially significant for startups navigating the financial uncertainties of their early years, providing them with a vital cushion to invest in growth, innovation, and employment generation.
Of the 187 startups approved, 75 received clearance during the 79th IMB meeting, while the remaining 112 were approved in the most recent session. With these additions, the total number of startups granted tax relief under the scheme has crossed 3,700, a testament to the policy’s growing impact.
In a welcome move announced during the Union Budget 2025–26, the government extended the eligibility window, allowing startups incorporated up to April 1, 2030, to apply for the benefits. This extension provides budding entrepreneurs with a broader timeline and more flexibility to plan their ventures and make the most of the tax relief.
The DPIIT has also revised its evaluation framework to ensure a more transparent and structured approval process. Applications that are complete in all respects are now being reviewed within 120 days—a step that significantly reduces delays and enhances predictability for applicants.
Startups that did not secure approval in the latest round have been urged to revisit and strengthen their applications. DPIIT officials emphasized the importance of showcasing innovation, scalability, and a measurable contribution to job creation and economic development.
This sustained support from the government not only offers crucial financial relief but also reflects a deeper commitment to building a self-reliant, innovation-driven economy. Entrepreneurs across the country can find more information about the tax exemption process, criteria, and application details on the official Startup India portal.
