DPIIT clears 187 startups for income tax exemption under Section 80-IAC
DPIIT said on 15 May 2025 that 187 startups were approved for income tax exemption under Section 80-IAC â 75 at the 79th and 112 at the 80th Inter-Ministerial Board meeting (30 April 2025) â taking the total past 3,700.
Summary
The Department for Promotion of Industry and Internal Trade (DPIIT) said on 15 May 2025 that it had approved 187 startups for income tax exemption under Section 80-IAC of the Income Tax Act: 75 at the 79th meeting and 112 at the 80th meeting of the Inter-Ministerial Board (IMB), held on 30 April 2025. Over 3,700 startups have now received the exemption since the scheme began. Eligible startups get a 100% deduction on profits for any three consecutive years within ten years of incorporation. Under the Union Budget 2025â26, startups incorporated before 1 April 2030 are now eligible, and complete applications are reviewed within 120 days.
Key facts
- Approved
- 187 startups (75 at 79th IMB, 112 at 80th IMB)
- 80th IMB meeting
- 30 April 2025
- Benefit
- 100% tax deduction on profits for 3 consecutive years within 10 years
- Eligibility
- Startups incorporated before 1 April 2030
- Total so far
- Over 3,700
- Review time
- 120 days
Practice MCQs 3 questions
How many startups did DPIIT approve for income tax exemption under Section 80-IAC, as announced on 15 May 2025?
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Correct answer: B â 187
187 startups were approved: 75 at the 79th and 112 at the 80th IMB meeting. Over 3,700 is the cumulative total.
Under Section 80-IAC of the Income Tax Act, eligible startups can claim:
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Correct answer: D â 100% deduction on profits for any 3 consecutive years within 10 years of incorporation
Eligible startups get a 100% income tax deduction on profits for any three consecutive years within a ten-year window from incorporation.
Consider the following statements about the Section 80-IAC startup tax benefit: 1. Startups incorporated before 1 April 2030 are now eligible to apply. 2. Under DPIIT's revised framework, complete applications are reviewed within 90 days. Which of the statements given above is/are correct?
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Correct answer: A â 1 only
Only statement 1 is correct. Complete applications are reviewed within 120 days.