In the continued drive towards improving 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.
The approvals were granted during the 80th meeting of the Inter-Ministerial Board (IMB) held on 30th April 2025. Of the total, 75 approvals were approved during the 79th Inter-Ministerial Board (IMB) meeting and 112 in the 80th meeting, taking the cumulative number of startups benefiting under this provision to over 3,700 since the inception of the scheme on 1 April 2017.
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The revised Section 80-IAC framework allows eligible startups to claim a 100 percent income tax deduction on profits for any three consecutive years within the first ten years from the date of incorporation.
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The intent behind the revision of Section 80-IC is to support startups during their formative stages, encourage innovation, conduct wealth generation, and provide a conducive environment for job creation.
In a notable expansion, the Union Budget 2025–26 extended the eligibility timeline, allowing startups incorporated up to 1st April 2030 to apply for this tax relief, expanding the window of opportunity for new ventures to pan out their growth strategy while availing financial advantages.
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The revised evaluation framework introduced by DPIIT aims to improve transparency and structure in the application process. Under the new system, complete applications are reviewed within 120 days, ensuring more timely decisions while reducing bureaucratic delays that previously hindered startups from accessing benefits timely.
While 187 startups have been approved in the latest round, the DPIIT has also urged those who were not selected in the latest round to rework and refine their proposals while pushing for an enhanced focus on demonstrating technological innovation, scalability, job creation potential, and economic value addition.
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The ongoing provisions for tax exemptions under Section 80-IAC reaffirms the government’s commitment to creating a vibrant, future-ready startup landscape. More details about eligibility, procedures, and application guidance are available on the official Startup India portal at https://www.startupindia.gov.in/.
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