In a major boost to India’s startup ecosystem, the Department for Promotion of Industry and Internal Trade (DPIIT) has approved income tax relief for new startups under the revised Section 80-IAC of the Income Tax Act. Let’s understand the news that DPIIT grants income tax relief for new startups.
100% Tax Deduction on Profits
Under the tax relief scheme, eligible startups can now claim a 100% income tax deduction on profits for any three consecutive years within ten years from their date of incorporation. This exemption will now ensure support for startups during their early and most challenging growth phases.
Extended Eligibility Window for Startups
In the Union Budget 2025–26, the government announced an extension of the eligibility deadline. That means, startups incorporated up to 1st April 2030 can now apply for this tax relief. Thus, you can make your business also eligible for all the benefits through the Startup India Certification.
Faster and Transparent Process
DPIIT has also introduced a revised evaluation framework. Businesses can now speed up and simplify the approval process with right assistance. The complete application process is now processed within 120 days, reducing delays and encouraging timely decisions.
Focus on Innovation and Growth
Startups are encouraged to showcase technological innovation, market potential, scalability, and employment generation in their applications. Those not approved in this round should improve their proposals and reapply.
In conclusion, this move highlights the government’s commitment to building a future-ready, innovation-led economy. The tax relief makes it easier for startups to focus on growth and eases the burden of ITR filing. For more details on the application process, eligibility, and ITR filing guidelines, you can consult our professional and experienced startup advisors: 8881-069-069.
Download E-Startup Mobile App and Never miss the latest updates narrating to your business.