Union Budget 2025-26 (Full) + Finance Bill, 2025

IX. Extension of timeline for tax benefits to start-ups

The existing provisions of Section 80-IAC of the Act, inter alia, provide for a deduction of an amount equal to hundred percent of the profits and gains derived from an eligible business by an eligible start-up for three consecutive assessment years out of ten years, beginning from the year of incorporation, at the option of the assessee subject to the condition that ,–

(I) the total turnover of its business does not exceed one hundred crore rupees,

(II) it is holding a certificate of eligible business from the Inter-Ministerial Board of Certification, and

(III) it is incorporated on or after the 1st day of April, 2016 but before the 1st day of April, 2025.

2. It is proposed to amend the above section so as to extend the benefit for another period of five years, i.e. the benefit will be available to eligible start-ups incorporated before 01.04.2030.

3. This amendment will take effect from the 1st day of April 2025.

[Clause 18]

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Union Budget 2025-26 (Full) + Finance Bill, 2025