In latest round, govt clears 187 start-ups to avail tax holiday for 3 years
This story was originally published at 17:34 IST on 15 May 2025
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NEW DELHI – In the latest round of approvals, the Department for Promotion of Industry and Internal Trade has approved 187 start-ups for exemption under Section 80-IAC of the Income Tax Act, 1961, in order to boost the start-up ecosystem, the commerce ministry said in a release Thursday. With this, over 3,700 start-ups have now been granted exemptions since the scheme's inception.
Of the total approvals, 75 start-ups were cleared during the 79th Inter-Ministerial Board meeting and 112 during 80th such meeting, the ministry said.
Under Section 80-IA, eligible assessees who make profits can claim 100% tax deductions for any three successive years within a ten-year window from the date of incorporation. The scheme is designed to support emerging businesses in their formative years to create jobs and profitability.
In order to be eligible for the scheme, a particular company must be incorporated after Mar. 31, 2016 and before Apr. 1, 2030. Originally, the sunset date was Apr. 1, 2025, but the Budget for 2024-25 (Apr-Mar) extended the timeline by five years to give an impetus to the growing start-up ecosystem in the country.
According to the release, start-ups that were not approved in the latest round have been encouraged to reassess and refine their applications. "The DPIIT has advised applicants to focus on demonstrating technological innovation, market potential, scalability, and a clear contribution to employment and economic growth," it said. End
Reported by Priyasmita Dutta
Edited by Deepshikha Bhardwaj
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