The central government, on May 15, 2025, approved 187 startups for income tax exemption.
A 100% income tax deduction on profits is allowed for eligible startups for any three consecutive years within a ten-year period from the date of incorporation.
The income tax benefit scheme is made to assist emerging businesses in their initial years, motivating innovation, employment, and wealth generation.
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 Commerce and Industry Ministry cited.
In the Inter-Ministerial Board (IMB) meeting, the same decision for this was adopted.
Since the start of the scheme, over 3700 startups have been provided with exemptions.
During the Union Budget 2025-26, the announcement made was that the government extended the eligibility window for startups to claim benefits u/s 80-IAC.
New startups started before April 1, 2030, can now apply for financial help. This change gives startups the opportunity for ventures.
DPIIT’s changed evaluation framework has made the process of application more structured and clear. Within 120 days, complete applications are now reviewed for quick decision-making and to decrease procedural delays.
Startups are motivated to reassess and refine their applications, which were unapproved in the latest round.
As per DPIIT, applicants must focus on illustrating technological innovation, market potential, scalability, and a contribution to job and financial growth.
