Startup schemes
Section 80-IAC startup tax holiday extended to startups incorporated before 1 April 2030
- Effective
- 2025-04-01
- Published
- 2025-05-15
- Authority
- Department for Promotion of Industry and Internal Trade (DPIIT) / Central Board of Direct Taxes
The Union Budget 2025-26 extended the period of incorporation for the section 80-IAC startup tax holiday by five years, so startups incorporated before 1 April 2030 are eligible to apply. The benefit is a 100% deduction of profits for any three consecutive years within a ten-year window from incorporation, granted by the Inter-Ministerial Board on DPIIT's revised evaluation framework, under which complete applications are reviewed within 120 days. DPIIT reported that 187 startups were approved across the 79th and 80th IMB meetings, taking cumulative approvals past 3,700.
Corroborated by the Budget 2025-26 direct tax release (PIB PRID 2098362), which states the extension to entities incorporated before 01.04.2030. DPIIT recognition alone does not give the deduction - a separate IMB certificate under section 80-IAC is needed.
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