New Delhi, May 15 – In a significant move to boost the startup ecosystem, the Indian government has approved 187 startups for income tax exemption under the revamped Section 80-IAC of the Income Tax Act, according to an official statement released on Thursday.
Tax Exemption to Spur Innovation and Growth
The income tax exemption allows eligible startups to deduct 100 percent of their profits for any three consecutive years within a ten-year window from their date of incorporation. This initiative supports young businesses during their formative years, fostering innovation, employment generation, and wealth creation.The approvals were granted during the Inter-Ministerial Board (IMB) meeting, overseen by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry.
Over 3,700 Startups Benefitted Since Launch
With the latest approvals, more than 3,700 startups have received tax exemptions under the scheme since its inception. This reaffirms the government’s continued commitment to nurturing India’s growing startup ecosystem.In a key announcement made during the Union Budget 2025–26, the eligibility timeline for availing benefits under Section 80-IAC was extended. Startups incorporated on or before April 1, 2030, can apply for this incentive, offering a broader window for emerging ventures.
Streamlined Evaluation for Faster Processing
The DPIIT highlighted that the revised evaluation framework has significantly improved transparency and efficiency in the application process. Complete applications are reviewed within 120 days, accelerating decision-making and minimizing procedural delays.Guidance for Future Applicants
Startups not receiving approval in the current round have been encouraged to revisit and enhance their submissions. The DPIIT has advised applicants to emphasize technological innovation, market potential, scalability, and a clear contribution to employment and economic development in their applications.This proactive step underscores the government’s vision of positioning India as a global startup hub by fostering a supportive and streamlined regulatory environment.
