Govt approves 187 startups for tax exemption under revamped Section 80-IAC framework
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
19 minutes ago
- Time of India
MLA opposes cut in Hebbal Metro hub land allocation in Bengaluru
Bengaluru: Rajajinagar MLA and former minister Suresh Kumar has urged the govt not to reduce the land allocated for the proposed multi-modal transport hub at Hebbal to 9 acres from 45 acres. In a letter to the govt, Kumar warned against altering the project to accommodate real estate and political interests. Kumar said any reduction would lead to the scrapping of critical citizen-friendly features such as parking space, and interlinking of three Metro lines, including the airport line. He alleged that the govt is quietly moving to approve the nine-acre plan. "If the govt forces BMRCL to compromise, I will educate civic groups and launch a campaign against this decision," he said. He urged chief minister Siddaramaiah, DCM DK Shivakumar, and industries minister MB Patil to reject any attempts by real estate lobbies to influence the project. Kumar also demanded compensation for the original landowners, who have waited over 20 years for settlement after their land was acquired. You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru A stakeholders' meeting on land transfer for the Hebbal Metro hub is expected Monday. Over a year ago, BMRCL sought 45 acres for the project and agreed to pay more than Rs 500 crore to KIADB, which holds the land. The land was initially acquired for a tourism project two decades ago but has remained unused. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: One simple trick to get internet without a subscription Techno Mag Learn More Undo Despite assurances from Shivakumar and Patil that Metro's interests would be protected, BMRCL recently decided to scale back the land requirement to 9 acres. The move has drawn criticism from civic groups and transport planners, who argue that prioritising real estate development over robust public transport infrastructure will harm the city's long-term mobility needs.
The Hindu
6 hours ago
- The Hindu
The helping hand of banks to Tamil Nadu's startup ecosystem
In response to increasing demand and interest from entrepreneurs, banks headquartered in Tamil Nadu are now expanding their network by opening additional branches and specialized cells to support the startups. For many years, banks have played a crucial role in supporting the startup ecosystem. Now, they are also partnering with more incubators and educational institutions. Indian Overseas Bank (IOB), through its startup branch, has established strong network with various stakeholders through District Industries Centre (DIC), National Credit Guarantee Trustee Company Limited (NCGTC) (for credit guarantee coverage) and State government agency. IOB Managing Director and CEO Ajay Kumar Srivastava said: 'The networking and liaising has resulted in various inquiries coming in from all over India. In view of the same, the bank is planning to encourage main branches in startup hubs like Bengaluru, Mysuru, Gurugram and others to tap the opportunity by offering collateral free loans through coverage under CGSS (Credit Guarantee Scheme for Start Ups) or CGTMSE.' The bank has already launched a tailor-made scheme for startups by the name 'IOB Pragati' which it plans to propagate in major centres, he said. Till date, IOB has supported 22 startups with a total funding of ₹73.84 crore. The funding is in the form of both term loan for fixed capital requirement and cash credit for working capital requirement of various firms. The sectors financed by the bank include EV manufacturing, biotech, medical equipment manufacturing, software and IT, food and beverages. Chennai-headquartered Indian Bank is planning to expand its startup branch network beyond its existing ten locations. Currently, the bank has 10 dedicated Startup Cells across major innovation hubs including Ahmedabad, Bengaluru, Chennai, Coimbatore, Delhi, Gurugram, Guwahati, Hyderabad, Kanpur and Mumbai. As of May 2025, Indian Bank has extended financial assistance to over 139 startups, covering diverse sectors such as healthcare, education, consumer services and eco-friendly product innovation. Cumulatively it has disbursed over ₹340 crore under the 'Ind Spring Board' scheme, which was designed to offer tailored, collateral-light financing solutions based on the cash flow potential and business viability of the startup, not just asset backing. Indian Bank's roadmap includes partnering with more incubators and State startup missions to deepen grassroots access besides exploration of partnerships with venture capitalists, fintechs and academic institutions to provide end-to-end support, from ideation to scale-up. The bank also has a strong network with the IIT-Madras Incubation Cell. The collaboration with IIT-Madras Incubation Cell was formalized in 2023 under the Ind Spring Board initiative, with the aim of leveraging their deep-tech ecosystem and co-creating scalable funding solutions. Through this strategic partnership, the bank participates in demo days and pitch events hosted by IIT-M.
Hans India
9 hours ago
- Hans India
Maharashtra: Skill Development Centre to be set up at Aurangabad Industrial City
New Delhi: A 20,000 sq. ft. Skill Development Centre is set to be established at Aurangabad Industrial City (AURIC) in partnership with the Confederation of Indian Industry (CII), for which an MoU is expected to be signed next week, according to an official statement issued on Sunday. Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), Amardeep Singh Bhatia, confirmed the project during his visit to Chhatrapati Sambhaji Nagar to review the progress of industrial infrastructure and development of startups in the region. The Secretary emphasised the need to attract Global Capability Centre (GCC) investments and foster the development of Research and Development centres at AURIC to further enhance the region's innovation and industrial ecosystem. Stakeholders also recommended the convergence of Pradhan Mantri Awas Yojana 2.0 subsidies with state housing policies to offer a comprehensive package for inclusive residential development, thereby supporting the growth of a well-rounded industrial township. The visit also included an industry interaction session chaired by the Secretary at AURIC Hall, which witnessed participation from key stakeholders, including industry bodies such as MASSIA, CMIA, CII, FICCI, and ASSOCHAM. During the discussion, stakeholders suggested measures such as improved connectivity between Aurangabad-Hyderabad-Chennai, development of an MRO facility and Vande Bharat terminal, better logistics access at Bidkin, local train services between Jalna and Waluj, affordable housing via MHADA, and a dedicated chemical zone, the statement said. Recommendations also included increasing MSME land reservation from 10 per cent to 40 per cent, reserving 10 per cent land for startups, and strengthening soft infrastructure and skill development at AURIC. P. Anbalagan, Secretary, Industries Department, Government of Maharashtra, also presented the state's strategic vision for industrial growth through initiatives like MITL and MMLP. The Secretary's visit began with an interactive session at the Marathwada Accelerator for Growth and Incubation Council (MAGIC), where he engaged with budding entrepreneurs, incubators, and startup founders from the region. He appreciated their innovative spirit and highlighted the Government's strong support through initiatives like Startup India, Fund of Funds, and sector-specific incentives aimed at boosting the startup ecosystem, especially in Tier-2 and Tier-3 cities. The secretary also visited the Bidkin Industrial area, where he reviewed key infrastructure sites including JSW Green-Tech Ltd, Toyota Kirloskar facility, and the Water Treatment Plant. His visit further progressed to the Shendra Industrial Area, where he toured key industrial units including NLMK India, Hyosung T and D Pvt. Ltd., and Coatall Films Pvt. Ltd. He appreciated their role in driving high-value manufacturing and generating employment, contributing significantly to the vision of Viksit Bharat@2047. Besides, he took stock of the industrial infrastructure at AURIC, including the Water Treatment Plant, Integrated Command and Control Centre (ICCC), the state-of-the-art AURIC Hall, and the 3D city model of Shendra. Bhatia reiterated that collaboration between government and industry is essential to position Maharashtra as a global hub for manufacturing and innovation. The session witnessed active participation from Industry Associations and the Government of Maharashtra, reinforcing their shared commitment to catalysing industrial growth in the region, the statement added.
