DPIIT / Startup India Recognition

DPIIT recognition is the official Startup India recognition granted through the DPIIT notification and portal process; it is not the same thing as incorporation. The current definition looks at innovation or scalability, turnover and age limits, and excludes entities formed by splitting or reconstruction. Recognition is the gateway to startup benefits such as tax and procurement relaxations. (DPIIT notification G.S.R. 108(E), 2026, superseding G.S.R. 127(E); Startup India portal)

Section 80-IAC gives an eligible startup a 100% deduction of profits for 3 consecutive assessment years out of 10 years from incorporation. The Income Tax Department says the eligible startup for Section 80-IAC must be a company or LLP, incorporated between 1 April 2016 and 31 March 2030, with turnover not exceeding Rs. 100 crore in any previous year and an IMB certificate. So DPIIT recognition and the tax deduction are related, but not identical. (Income-tax Act, 1961, s. 80-IAC; Income Tax Department guidance)

Under the current DPIIT notification, a startup can be an eligible company, partnership firm, LLP, multi-state cooperative society or cooperative society, must be up to 10 years old, and must have turnover not above Rs. 200 crore in any previous year. It must be working toward innovation, development or improvement of products, processes or services, or have a scalable model with high employment or wealth creation potential. It also cannot be formed by splitting or reconstructing an existing business. (DPIIT notification G.S.R. 108(E), 2026, superseding G.S.R. 127(E))

The notification does not prescribe a fixed statutory processing period. DPIIT materials state that complete and eligible recognition applications are issued in about 48 to 72 working hours on the portal, but that is a service standard rather than a statutory deadline. So the legally safe answer is that there is no fixed day-count in the Act or notification. (DPIIT Startup India recognition guidance)

Section 56(2)(viib) does not apply to an eligible startup that satisfies the DPIIT conditions and files the declaration in Form 2. The Income Tax Department says the exemption is available from incorporation, but it can be withdrawn retrospectively if the startup violates the post-issue asset restrictions within seven years. The key compliance step is the Form 2 declaration on the Startup India portal. (Income-tax Act, 1961, s. 56(2)(viib); Income Tax Department guidance)

Yes. Under the DPIIT notification, startup status ends when the entity crosses the time limit or the turnover threshold, and it also fails if it no longer satisfies the innovation or anti-splitting conditions. That means recognition is conditional, not permanent. (DPIIT notification G.S.R. 108(E), 2026, superseding G.S.R. 127(E))

Form-1 is the online recognition application used on the Startup India and DPIIT portal. The current notification says the startup makes an online application in Form-1 and uploads the incorporation or registration documents with the prescribed declarations. Form 2 is the separate angel-tax exemption declaration. (Startup India recognition notification; Income Tax Department guidance)

Yes. DPIIT and Startup India materials say recognised startups can get relaxation from prior turnover, prior experience and earnest money deposit requirements in suitable public procurement tenders, subject to the tender conditions. The relevant procurement relaxations are reflected in GFR 2017 Rule 170 and Rule 173 and the official startup procurement guidance. (GFR, 2017, rules 170 and 173; DPIIT/Startup India procurement guidance)