Department for Promotion of Industry and Internal Trade (DPIIT) has approved 187 startups for income tax exemption under the revised Section 80-IAC of the Income Tax Act. These approvals were granted during the 79th and 80th meetings of the Inter-Ministerial Board (IMB), with 75 and 112 startups cleared respectively. This brings the total number of approved startups under this scheme to over 3,700. The tax benefit offers a 100% deduction on profits for any three consecutive years within ten years from the date of incorporation, aimed at easing the financial burden on early-stage companies.
A key update, announced in the Union Budget 2025–26, extends eligibility to startups incorporated until 1st April 2030, allowing more new ventures to apply for this benefit. DPIIT has also introduced a revised evaluation framework that aims to make the application process more structured and transparent. Complete applications are now processed within 120 days to improve efficiency.
Startups not approved in the recent round are encouraged to reassess and refine their submissions, focusing on innovation, scalability, market potential, and their role in employment generation. The initiative forms part of the government’s broader efforts to support startups and strengthen the entrepreneurial ecosystem in India. Further details on eligibility and the application process are available on the official Startup India portal.
Ministry of Commerce & Industry
Azadi ka Amrit Mahotsav
DPIIT Clears 187 Startups For Tax Relief Under Revised Section 80-IAC Framework
Eligibility Extended for Startups Incorporated Upto April 2030
Posted On: 15 MAY 2025 4:40PM by PIB Delhi
In a significant boost to India’s startup ecosystem, the Department for Promotion of Industry and Internal Trade (DPIIT) has approved 187 startups for income tax exemption under the revamped Section 80-IAC of the Income Tax Act. Notably, the decision came during the 80th meeting of the Inter-Ministerial Board (IMB), held on 30th April 2025.
According to a spokesperson of DPIIT, the tax benefit allows eligible startups a 100% income tax deduction on profits for any three consecutive years within a ten-year window from the date of incorporation. The scheme is designed to support emerging businesses in their formative years, encouraging innovation, job creation, and wealth generation.
Of the total approvals, 75 startups were cleared during the 79th IMB meeting and 112 during 80th such meeting . With this, over 3,700 startups have now been granted exemptions since the scheme’s inception.
In a key announcement during the Union Budget 2025–26, the government extended the eligibility window for startups to claim benefits under Section 80-IAC. Startups incorporated before 1st April 2030 are now eligible to apply, giving more time and opportunity to new ventures to benefit from this financial relief.
Pertinently, the revised evaluation framework introduced by DPIIT has made the application process more structured and transparent. Complete applications are now reviewed within 120 days, ensuring faster decision-making and reducing procedural delays.
Startups that were not approved in the latest round have been encouraged to reassess and refine their applications. The DPIIT has advised applicants to focus on demonstrating technological innovation, market potential, scalability, and a clear contribution to employment and economic growth.
The government’s continued support underlines its commitment to fostering a robust, future-ready startup environment aligned with the vision of a self-reliant and innovation-led New India.
Further information on the tax exemption process, eligibility criteria, and application details is available on the official Startup India portal, the spokesperson added.
