DPIIT approves 187 startups for tax exemption under revised Section 80-IAC

With this, the total number of startups granted tax exemptions under the scheme has crossed 3,700 since its launch.

May 15, 2025 - 14:42

DPIIT approves 187 startups for tax exemption under revised Section 80-IAC

The 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.

The approvals were made during the 79th and 80th meetings of the Inter-Ministerial Board (IMB), with 75 startups cleared in the 79th meeting and 112 in the 80th, held on April 30, 2025.

With this, the total number of startups granted tax exemptions under the scheme has crossed 3,700 since its launch.

Section 80-IAC offers eligible startups a 100% income tax deduction on profits for any three consecutive years within a ten-year window from the date of incorporation. According to the revised provision, the eligibility cut-off for incorporation has been extended to April 1, 2030—an extension announced in the Union Budget 2025-26. The earlier deadline was April 1, 2024.

The revised framework also introduced procedural changes aimed at streamlining the application process. DPIIT now commits to reviewing complete applications within 120 days, in a move to expedite decision-making and reduce delays.

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Startups that did not secure approval have been advised to reassess their proposals. The DPIIT emphasised the importance of demonstrating technological innovation, market potential, scalability, and measurable impact on employment and economic activity.

Further information on eligibility, the application process, and exemption details is available on the Startup India portal.

Edited by Kanishk Singh