Tax Break Boost: 187 Startups Get Approved for Income Tax Exemption

The government announced on Thursday its approval of 187 startups for income tax exemption. This move allows qualifying startups a full income tax deduction on their profits for any three consecutive years within a decade from their incorporation date.

The initiative, designed to bolster emerging businesses, aims to stimulate innovation, job creation, and wealth generation. The Department for Promotion of Industry and Internal Trade (DPIIT) confirmed the exemptions under the revamped Section 80-IAC of the Income Tax Act after a decision by the Inter-Ministerial Board.

The effort to extend the eligibility for these benefits to startups incorporated before April 1, 2030, was announced during the Union Budget 2025-26. This expansion grants new ventures more time and opportunity to capitalize on this financial relief. Over 3,700 startups have benefited from the exemption since the scheme began.

(With inputs from agencies.)