• DPIIT has approved 187 startups for income tax exemption under Section 80-IAC
• This tax incentive allows qualified startups to deduct 100% of profits for three consecutive years
• The recent approvals follow a relaxation in eligibility criteria, allowing startups incorporated

In a big boost to India's innovation-driven entrepreneurial ecosystem, the Department for Promotion of Industry and Internal Trade (DPIIT) has cleared 187 startups for income tax exemption under the new Section 80-IAC of the Income Tax Act. The approvals were accorded at 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.

With this latest batch, the number of startups that have been exempted under this scheme has passed 3,700 a number that reflects the Centre's sustained effort in helping budding ventures during their formative stages.

Section 80-IAC provides tax deduction of 100% for profits to qualified startups for three consecutive years out of ten from the year they incorporate. It is one of the most significant financial incentives that can be availed by startups in India, focused on technological innovation, employment generation, and economic development.

The latest approvals follow a significant announcement in the Union Budget 2025–26, in which the government relaxed the window of eligibility. Startups incorporated up to April 1, 2030, are now eligible to access the benefits an increase that provides more flexibility and access to future entrepreneurs.

A DPIIT official confirmed that the recently revised assessment framework has served to make the process more streamlined and transparent. Duly filled-up applications are now scrutinized within a specified period of 120 days, leading to notable curtailment of procedural time lags and providing startups with more expeditious clarity regarding their eligibility.

Startups whose proposals did not qualify in the ongoing round have been asked to make their submissions stronger. The DPIIT has asked such applicants to focus even more intensely on critical areas, which are evidenced innovation, scalability, market opportunity, and job creation impact.

The tax exemption initiative, under the overall Startup India policy, is evidence of the government's commitment to a self-dependent, digitally led economy. It also betrays continuity in policy support as India's startup ecosystem matures, securing record venture capital and developing an increasingly successful pipeline of unicorns.

More details about the scheme, eligibility criteria, and application processes can be found on the official Startup India website.