The Department for Promotion of Industry and Internal Trade (DPIIT) has selected 187 startups for income tax exemption. The selected startups will be eligible for a 100 percent income tax exemption for a period of 3 years.
Of the 187 selected startups for the income tax exemption benefits, 112 startups were finalised in the latest Inter-ministerial Board Meeting on April 30, 2025, while the remaining 75 finalised startups were selected in last year’s Inter-ministerial Board meeting.
Purpose of the income tax relief scheme
Since its inception in 2017, over 3700 startups have been granted income tax relief under the scheme. The scheme is aimed at helping promising startups in their early years. Additionally, the scheme is also framed to encourage innovation, entrepreneurship, and job creation.
As a parameter for the selection of the scheme, the Department for Promotion of Industry and Internal Trade (DPIIT) looks for those startups that have potential for technological innovation, scalability, and market potential, and a purpose of generating economic growth and employment in India.
Eligibility Criteria
Earlier, those startups that were incorporated before March 31, 2025, were eligible to apply to the scheme. Now the government has extended the incorporation date criteria to April 1, 2030.
To be eligible for the scheme, the startup’s turnover should not exceed Rs 100 crore in any previous fiscal year. Additionally, the startup should not have been formed from the splitting of an existing business.
Also, the startup should be recognized by DPIIT and have obtained certificates from the Inter-Ministerial Board of Certification.