Startup Surge: Government Hands Out Tax-Free Passes to 187 Budding Innovators

In a significant policy decision to bolster India's innovation-led startup environment, the Department for Promotion of Industry and Internal Trade (DPIIT) has sanctioned 187 startups for exemption from income tax under the revamped Section 80-IAC of the Income Tax Act. The move, which was made public following the 80th meeting of the Inter-Ministerial Board (IMB), seeks to grant much-needed economic relief to new businesses, promote employment generation, innovation, and economic development. 

 

Background and Policy Update

Elarge Base of Eligibility and Application Period

Purpose and Impact

Eligibility Criteria

Advice for Unsuccessful Applicants

Startups that are not cleared during the current round are invited to revisit and upgrade their applications, with specific emphasis on technological innovation, market potential, scalability, and quantifiable contributions to employment and economic growth. 

 

Challenges and Uptake

Even with more than 1.6 lakh startups registered with DPIIT, exemptions have only been granted to around 3,700, underlining selectivity of the scheme and the necessity for additional streamlining of the process.

 

Relevant Sources: Press Information Bureau, Financial Express, NewsOnAir, Economic Times, eGov Magazine, Inc42