Overview

• The Department for Promotion of Industry and Internal Trade (DPIIT) has approved 187 startups for income tax exemptions under the revamped Section 80-IAC of the Income Tax Act.
• Of the 187 approvals, 112 were finalized during the 80th Inter-Ministerial Board (IMB) meeting on April 30, 2025, and 75 were cleared in the previous cycle.
• The scheme provides eligible startups with a 100% income tax deduction on profits for three consecutive years within a ten-year incorporation window.
• The government extended the eligibility window for startups to claim benefits, now covering incorporations up to April 1, 2030, as announced in the Union Budget 2025–26.
• DPIIT has introduced a 120-day review framework to streamline application evaluations, while non-approved applicants are encouraged to refine proposals focusing on innovation, scalability, and economic impact.