The Department for Promotion of Industry and Internal Trade (DPIIT) approves 187 startups for income tax exemption under the revamped Section 80-IAC of the Income Tax Act. Notably, the decision was made during the 80th meeting of the Inter-Ministerial Board (IMB), held on 30th April 2025. The tax benefit offers eligible startups a 100% income tax exemption on profits for any three consecutive years within ten years from their date of incorporation. 

The scheme aims to support early-stage businesses by fostering innovation, generating employment, and promoting wealth creation. Of the total approvals, 75 startups were cleared in the 79th Inter-Ministerial Board (IMB) meeting and 112 in the 80th. With this, over 3,700 startups have received tax exemptions since the scheme's inception.

To read how the Credit Guarantee Scheme by the Government of India can help your startup raise funds, click here! 

How can you apply? 

To apply for the tax exemption enabled for startups in India under the revamped Section 80-IAC of the Income Tax Act, the company must be a recognized startup meeting the following easy criterion: 

1. The startup should be incorporated as a private limited company or registered as a partnership firm or a limited liability partnership.
2. Its turnover should be less than INR 100 crores in any of the previous financial years.
3. An entity shall be considered as a startup up to 10 years from the date of its incorporation. 
4. It must be working towards innovation with a scope of scalability in the future. 

Additional eligibility criteria for applying for income tax exemption under 80IAC after receiving the recognition certificate from DPIIT include 

1. Only a private limited company or a limited liability partnership is eligible for tax exemption under Section 80IAC.
2. The startup should have been incorporated after 1st April, 2016.

To read why Sam Altman's new Startup, "The World," was banned in Hong Kong, click here! 

Structured and Transparent Process

Notably, DPIIT's revised evaluation framework has streamlined the application process, making it more structured and transparent. Complete applications are now assessed within 120 days, enabling quicker decisions and minimizing procedural delays.

To know more and apply, visit the Startup India website.