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May 15, 2025 — In a major boost to India’s entrepreneurial landscape, the Department for Promotion of Industry and Internal Trade (DPIIT) has approved income tax exemptions for 187 startups under the revised provisions of Section 80-IAC of the Income Tax Act. The approvals were granted during the 79th and 80th meetings of the Inter-Ministerial Board (IMB), with 75 startups cleared in the former and 112 in the latter, held on April 30, 2025.
These exemptions enable eligible startups to avail 100% income tax deduction on profits for any three consecutive assessment years within ten years of incorporation, easing financial pressures in their early growth phases. The initiative supports innovation, job creation, and broader economic development in line with India’s vision of fostering a resilient startup ecosystem.
As announced in the Union Budget 2025–26, the government extended the eligibility timeline for these benefits. Startups incorporated up to April 1, 2030 are now eligible to apply under Section 80-IAC, providing extended access to fiscal relief.
The DPIIT also introduced a revised evaluation mechanism to streamline the approval process. Complete applications are now reviewed within 120 days, ensuring efficiency and transparency in decision-making.
While over 3,700 startups have benefitted from the scheme so far, those not selected in the current round are encouraged to refine their proposals with a focus on innovation, scalability, and job creation.
The government reaffirmed its commitment to empowering startups and building a self-reliant, innovation-driven economy. Detailed guidelines and application procedures are available on the Startup India portal.