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DPIIT Grants Tax Exemptions to 187 Startups Under Revised 80-IAC Scheme.

National | Dated: 22 May 2025

In May 2025, the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry (MoC&I), Government of India (GoI), approved 187 startups for 100% income tax exemption under the revamped Section 80-IAC of the Income Tax Act, 1961.

🎯 Key Highlights:

  • - The approvals were granted during the 79th and 80th meetings of the Inter-Ministerial Board (IMB) held on 30th April 2025, clearing 75 startups and 112 startups, respectively.
  • - Eligible startups can claim 100% income tax deduction on profits for any three consecutive years within ten years from the date of incorporation.
  • - As per the Union Budget 2025-26, the deadline for incorporation to avail of this benefit has been extended to 1st April 2030 (earlier 31st March 2023), giving newer startups more time to qualify.

💡 Other Important Facts:

  • (i) DPIIT has simplified the application procedure, ensuring that all complete applications are evaluated and processed within 120 days, promoting faster approvals.
  • (ii) Startups must be recognized by DPIIT, function as a private limited company or LLP, and maintain an annual turnover of Rs. 100 crore or less in any previous financial year to qualify for tax benefits under Section 80-IAC.
  • (iii) In May 2025, DPIIT doubled the guarantee cover under the Credit Guarantee Scheme for Startups (CGSS) by raising the maximum loan limit per borrower from Rs. 10 crore to Rs. 20 crore, reinforcing financial support for startups.

📚 Test Your Knowledge:

Recently, how many startups were approved by DPIIT for tax exemption under the revised Section 80-IAC of the Income Tax Act, 1961?

Correct Answer: 187

🚀 Quick Recap: