Over 2,975 Indian Startups Granted Income Tax Exemptions Under Startup India

According to a senior official from the Department for Promotion of Industry and Internal Trade (DPIIT), as many as 2,975 government-recognised startups have been granted income tax exemptions under the Startup India initiative. Currently, there are 1,17,254 recognised startups as of December 31, 2022. To simplify the process of granting eligibility certificates for tax exemptions, the DPIIT is developing a standard operating procedure (SOP). This certificate is crucial for startups in claiming tax exemptions, and the absence of it often leads to funding issues. The aim is to resolve pending applications for eligibility certificates by March 31. Monthly meetings will also be held to address concerns faced by startups during this process. The government has also shown support for intellectual property rights by granting 1,800 patents to budding entrepreneurs. Although there has been a decline in equity funding, startups are now exploring debt funding and considering the IPO route. Several government schemes, including the Startup India seed fund scheme, fund of fund scheme, and credit guarantee scheme, have been implemented to assist these startups.