Govt Approves 187 Startups for Tax Exemption: How Will This Propel Growth?
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Synopsis
Discover how the Indian government is spearheading growth in the startup sector by approving 187 startups for tax exemptions under Section 80-IAC. This initiative not only fosters innovation but also paves the way for job creation and economic prosperity.
Key Takeaways
- 187 startups approved for tax exemption.
- 100% income tax deduction on profits for three years.
- Eligibility extended to startups incorporated before April 1, 2030.
- Streamlined application process with 120-day review.
- Focus on innovation and market potential recommended.
New Delhi, May 15 (NationPress) In a major advancement for India's startup landscape, the Department for Promotion of Industry and Internal Trade (DPIIT) has officially recognized 187 startups for income tax exemption under the updated Section 80-IAC of the Income Tax Act, as per the official announcement made on Thursday.
A spokesperson from DPIIT stated that this tax incentive grants eligible startups a 100% income tax deduction on profits for any three consecutive years within a 10-year period from their incorporation date. This initiative is crafted to aid burgeoning businesses during their early stages, fostering innovation, promoting job creation, and generating wealth.
Out of the total approvals, 75 startups received clearance during the 79th Inter-Ministerial Board (IMB) meeting and an additional 112 during the 80th meeting on April 30. To date, over 3,700 startups have benefitted from exemptions since the program's launch.
In a pivotal announcement during the Union Budget 2025–26, the government has extended the eligibility period for startups to avail benefits under Section 80-IAC. Startups incorporated before April 1, 2030 can now apply for the exemption, providing more time for new ventures to capitalize on this financial support.
Notably, the revised evaluation framework introduced by DPIIT has streamlined the application process, making it more structured and transparent. Complete applications are now evaluated within 120 days, facilitating quicker decisions and minimizing procedural delays.
Startups that were not successful in this round have been encouraged to reassess and enhance their applications. DPIIT advises applicants to emphasize their technological innovation, market potential, scalability, and their significant contribution to employment and economic growth.
The spokesperson stated, “The government’s unwavering support underscores its dedication to nurturing a robust, future-ready startup ecosystem that aligns with the vision of a self-reliant and innovation-driven New India.”
For more detailed information on the tax exemption process, eligibility criteria, and application guidelines, the spokesperson mentioned that resources are available on the official Startup India portal.
Point of View
The government's proactive approach in supporting startups through tax exemptions is commendable. It reflects a commitment to nurturing innovation and fostering an environment where new businesses can thrive and contribute to economic growth.
NationPress
26/07/2025
Frequently Asked Questions
What is the significance of the tax exemption for startups?
The tax exemption allows eligible startups to deduct 100% of their income tax on profits for three consecutive years within a decade of incorporation, promoting innovation and economic growth.
How many startups have received this exemption since its inception?
Since the launch of the scheme, over 3,700 startups have been granted tax exemptions.
What are the eligibility criteria for startups?
Startups incorporated before April 1, 2030, can apply for the exemption, provided they demonstrate technological innovation and market potential.
How long does the application review process take?
Under the new framework, complete applications are reviewed within 120 days, ensuring timely decisions.
Where can I find more information about the tax exemption process?
Further details regarding the tax exemption process and eligibility criteria can be found on the official Startup India portal.
