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In a major push to strengthen 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 decision was made during the 80th meeting of the Inter-Ministerial Board (IMB) on April 30, 2025.
The income tax exemption allows eligible startups a 100% deduction on profits for any three consecutive years within a ten-year period from their date of incorporation. The scheme aims to support startups in their early years, promote innovation, generate employment, and facilitate wealth creation.
Of the 187 approvals, 75 startups were cleared during the 79th IMB meeting and 112 during the 80th. With these latest additions, more than 3,700 startups have now been granted tax exemptions since the scheme’s launch.
To widen the scheme’s reach, the Union Budget 2025–26 extended the eligibility window. Startups incorporated before April 1, 2030, can now apply, offering a longer runway for emerging ventures to benefit from this critical support.
The DPIIT’s revised evaluation framework has made the application process more streamlined and transparent. Complete applications are now assessed within 120 days, reducing delays and enabling quicker decision-making.
Startups that did not qualify in this round have been encouraged to refine and resubmit their proposals. The DPIIT advises applicants to highlight technological innovation, scalability, market potential, and economic impact to improve their chances.
The government’s sustained focus on startup incentives reaffirms its commitment to building a self-reliant, innovation-driven economy. Further details on the exemption process and application criteria can be found on the Startup India portal.
