New Delhi: The Division for Promotion of Trade and Inner Commerce (DPIIT) has authorised 187 startups for earnings tax exemption underneath the revamped Part 80-IAC of the Revenue Tax Act. The transfer goals to offer essential fiscal aid to rising companies, encouraging innovation and supporting job creation throughout the nation.
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As per a commerce ministry assertion, the approvals got here through the 79th and eightieth conferences of the Inter-Ministerial Board (IMB), with 75 startups cleared within the 79th assembly and 112 within the eightieth, held on 30 April.
With these newest approvals, over 3,700 startups have now benefited from the scheme since its launch.
Beneath the revised framework, eligible startups can declare a 100% earnings tax deduction on earnings for any three consecutive years inside a ten-year interval from their date of incorporation. The Union Price range 2025–26 prolonged the eligibility window, permitting startups integrated as much as 1 April 2030, to avail of this profit, it mentioned on Thursday.
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To qualify, startups should be acknowledged by the DPIIT, function as a personal restricted firm or restricted legal responsibility partnership, and have an annual turnover not exceeding ₹100 crore in any earlier monetary 12 months.
The DPIIT has additionally simplified and sped up the applying course of, making certain that full purposes are reviewed inside 120 days. Startups that weren’t authorised on this spherical are inspired to assessment and strengthen their purposes, specializing in technological innovation, market potential, scalability, and their contribution to employment and financial development.
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These steps underline the federal government’s ongoing dedication to nurturing a vibrant, innovation-led startup ecosystem in India.
Earlier on 9 Could, the federal government doubled the assure cowl underneath its Credit score Assure Scheme for Startups (CGSS), elevating the restrict per borrower from ₹10 crore to ₹20 crore, a transfer geared toward easing credit score entry for startups and fueling innovation in precedence sectors.
The revised scheme, notified by the DPIIT on Friday, additionally will increase the assure cowl to 85% for loans as much as ₹10 crore and 75% for loans above that threshold. The federal government is positioning the expanded protection as a means for startups to safe working capital, time period loans, and enterprise debt, key to sustaining R&D and product improvement.
As of December 2024, the DPIIT had acknowledged 157,000 entities as startups. Because the launch of the Startup India initiative on 16 January 2016, these startups have generated over 1.55 million direct jobs, in line with a authorities assertion.
Trade consultants have welcomed the transfer. “It will give startups much-needed respiratory room to innovate and scale up with out the fast strain of tax burdens,” mentioned Vinod Kumar, president, India SME Discussion board.
“Mixed with improved entry to credit score, these measures create a supportive atmosphere that may assist Indian startups compete globally,” mentioned Kumar.
