DPIIT Approves 187 startups For Tax Relief Under Revised Section 80-IAC

The Department for Promotion of Industry and Internal Trade (DPIIT) has approved 187 startups for income tax exemption under the updated Section 80-IAC of the Income Tax Act.

This was decided during the 80th meeting of the Inter-Ministerial Board (IMB) on April 30, 2025, the Ministry of Commerce & Industry said.

A DPIIT spokesperson said that eligible startups can get 100% income tax relief on profits for any three years within the first ten years of starting up. The goal is to help new businesses grow by encouraging innovation, job creation, and wealth generation.

Out of the total approvals, 75 startups were cleared in the 79th IMB meeting and 112 in the 80th. So far, over 3,700 startups have received tax exemptions since the scheme began.

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In the Union Budget 2025-26, the government announced an extension of the deadline. Now, startups set up before April 1, 2030, can apply for benefits under Section 80-IAC, giving new businesses more time to take advantage of this tax relief.

Startups that didn’t get approval have been asked to review and improve their proposals. DPIIT highlighted the need to show tech innovation, market potential, growth plans, and clear impact on jobs and the economy. 

More details on who can apply, how to apply, and the tax benefits are available on the Startup India website.

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