DPIIT approves 187 startups for tax exemption under section 80-IAC, total crosses 3,700 mark

In a major boost to India’s innovation-led entrepreneurial ecosystem, the Department for Promotion of Industry and Internal Trade (DPIIT) has approved 187 startups for income tax exemption under the revamped Section 80-IAC of the Income Tax Act. The clearances were made during the 79th and 80th meetings of the Inter-Ministerial Board (IMB), with 75 startups approved in the former and 112 in the latter, which was held on April 30, 2025.

With this latest round, the total number of startups granted exemptions under this scheme has crossed 3,700—a milestone that underscores the Centre’s sustained efforts to support emerging ventures in their formative years.

Section 80-IAC offers eligible startups a 100% tax deduction on profits for any three consecutive years within a ten-year window from the date of incorporation. It is one of the most significant fiscal incentives available to startups in India, aimed at fostering technological innovation, employment generation, and economic development.

The recent approvals come in the wake of a crucial announcement during the Union Budget 2025–26, where the government extended the eligibility window. Now, startups incorporated until April 1, 2030, can avail of the benefits—an expansion that allows greater flexibility and access for future entrepreneurs.

A DPIIT spokesperson confirmed that the newly revised evaluation framework has helped make the process more structured and transparent. Completed applications are now reviewed within a targeted timeline of 120 days, significantly reducing procedural delays and offering startups quicker clarity on their eligibility.

Startups whose applications did not make the cut in the current round have been encouraged to strengthen their submissions. The DPIIT has urged such applicants to sharpen their focus on key areas, including demonstrable innovation, scalability, market opportunity, and impact on job creation.

The tax exemption scheme, part of the broader Startup India initiative, reflects the government's resolve to build a self-reliant, digitally advanced economy. It also signals continuity in policy support as India’s startup sector matures, attracting record venture capital and producing a growing pipeline of unicorns.

Further information about the scheme, eligibility requirements, and application processes is available on the official Startup India portal.