Latest news with #Inter-MinisterialBoard
Entrepreneur
16-05-2025
- Business
- Entrepreneur
DPIIT Clears 187 Startups for 100% Tax Relief
The decision was made during the 80th meeting of the Inter-Ministerial Board (IMB) on April 30, 2025. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. In a major push to strengthen India's startup 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 decision was made during the 80th meeting of the Inter-Ministerial Board (IMB) on April 30, 2025. The income tax exemption allows eligible startups a 100% deduction on profits for any three consecutive years within a ten-year period from their date of incorporation. The scheme aims to support startups in their early years, promote innovation, generate employment, and facilitate wealth creation. Of the 187 approvals, 75 startups were cleared during the 79th IMB meeting and 112 during the 80th. With these latest additions, more than 3,700 startups have now been granted tax exemptions since the scheme's launch. To widen the scheme's reach, the Union Budget 2025–26 extended the eligibility window. Startups incorporated before April 1, 2030, can now apply, offering a longer runway for emerging ventures to benefit from this critical support. The DPIIT's revised evaluation framework has made the application process more streamlined and transparent. Complete applications are now assessed within 120 days, reducing delays and enabling quicker decision-making. Startups that did not qualify in this round have been encouraged to refine and resubmit their proposals. The DPIIT advises applicants to highlight technological innovation, scalability, market potential, and economic impact to improve their chances. The government's sustained focus on startup incentives reaffirms its commitment to building a self-reliant, innovation-driven economy. Further details on the exemption process and application criteria can be found on the Startup India portal.
Mint
15-05-2025
- Business
- Mint
Govt approves 187 startups for tax exemption under revamped Section 80-IAC framework
New Delhi: 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 move aims to provide crucial fiscal relief to emerging businesses, encouraging innovation and supporting job creation across the country. As per a commerce ministry statement, the approvals came during the 79th and 80th meetings of the Inter-Ministerial Board (IMB), with 75 startups cleared in the 79th meeting and 112 in the 80th, held on 30 April. With these latest approvals, over 3,700 startups have now benefited from the scheme since its launch. Under the revised framework, eligible startups can claim a 100% income tax deduction on profits for any three consecutive years within a ten-year period from their date of incorporation. The Union Budget 2025–26 extended the eligibility window, allowing startups incorporated up to 1 April 2030, to avail of this benefit, it said on Thursday. To qualify, startups must be recognized by the DPIIT, operate as a private limited company or limited liability partnership, and have an annual turnover not exceeding ₹ 100 crore in any previous financial year. The DPIIT has also simplified and sped up the application process, ensuring that complete applications are reviewed within 120 days. Startups that were not approved in this round are encouraged to review and strengthen their applications, focusing on technological innovation, market potential, scalability, and their contribution to employment and economic growth. These steps underline the government's ongoing commitment to nurturing a vibrant, innovation-led startup ecosystem in India. Earlier on 9 May, the government doubled the guarantee cover under its Credit Guarantee Scheme for Startups (CGSS), raising the limit per borrower from ₹ 10 crore to ₹ 20 crore, a move aimed at easing credit access for startups and fueling innovation in priority sectors. The revised scheme, notified by the DPIIT on Friday, also increases the guarantee cover to 85% for loans up to ₹ 10 crore and 75% for loans above that threshold. The government is positioning the expanded coverage as a way for startups to secure working capital, term loans, and venture debt, key to sustaining R&D and product development. As of December 2024, the DPIIT had recognized 157,000 entities as startups. Since the launch of the Startup India initiative on 16 January 2016, these startups have generated over 1.55 million direct jobs, according to a government statement. Industry experts have welcomed the move. 'This will give startups much-needed breathing room to innovate and scale up without the immediate pressure of tax burdens,' said Vinod Kumar, president, India SME Forum. 'Combined with improved access to credit, these measures create a supportive environment that can help Indian startups compete globally,' said Kumar.
Hans India
15-05-2025
- Business
- Hans India
Govt approves 187 startups for tax exemption to boost growth
New Delhi: In a significant boost to India's startup 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, according to an official statement issued on Thursday. According to a DPIIT spokesperson, the tax benefit allows eligible startups a 100 per cent income tax deduction on profits for any three consecutive years within a 10-year window from the date of incorporation. The scheme is designed to support emerging businesses in their formative years, encouraging innovation, job creation, and wealth generation. Of the total approvals, 75 startups were cleared during the 79th Inter-Ministerial Board (IMB) meeting and another 112 during the 80th such meeting held on April 30. With this, over 3,700 startups have now been granted exemptions since the scheme's inception. In a key announcement during the Union Budget 2025–26, the government extended the eligibility window for startups to claim benefits under Section 80-IAC. Startups incorporated before 1st April 2030 are now eligible to apply for the exemption, giving more time and opportunity to new ventures to benefit from this financial relief. Pertinently, the revised evaluation framework introduced by DPIIT has made the application process more structured and transparent. Complete applications are now reviewed within 120 days, ensuring faster decision-making and reducing procedural delays. Startups 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. 'The government's continued support underlines its commitment to fostering a robust, future-ready startup environment aligned with the vision of a self-reliant and innovation-led New India,' the spokesperson said. Further information on the tax exemption process, eligibility criteria, and application details is available on the official Startup India portal, the spokesperson added.
