Government-Recognized Startups: 2,975 Granted Income Tax Exemptions

A senior official from the Department for Promotion of Industry and Internal Trade (DPIIT) revealed that up to 2,975 government-recognized startups have been awarded income tax exemptions as of the latest update. This significant development underscores the ongoing support and encouragement provided by the government through initiatives such as Startup India.

Startup India Initiative

Initiated in 2016, the Startup India Action Plan aims to foster a conducive environment for startups to thrive and flourish in the Indian ecosystem. Central to this initiative is the provision of income tax exemption, among other benefits, to eligible startups.

Current Status

According to Sanjiv, a Joint Secretary at DPIIT, as of December 31 last year, the department has recognized 1,17,254 startups. Furthermore, the number of startups enjoying income tax benefits has witnessed a steady rise, from 1,100 in March 2023 to the current count of 2,975.

Standard Operating Procedure

The DPIIT is actively working on formulating a standard operating procedure (SOP) to streamline the process of examining and expediting applications for eligibility certificates. These certificates are imperative for startups to avail themselves of tax exemptions.

Future Prospects

With the ongoing efforts to enhance the ease of doing business for startups, the government’s commitment to supporting the startup ecosystem remains unwavering. The forthcoming SOP is poised to simplify administrative procedures, ensuring swift and efficient processing of applications.

As the Indian startup landscape continues to evolve, initiatives like Startup India play a pivotal role in fostering innovation, entrepreneurship, and economic growth. The recent surge in the number of startups benefiting from income tax exemptions reflects the positive momentum in the startup ecosystem.


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