Quick Summary
DPIIT issues Start-up India recognition and formulates industrial policies.
DPIIT, the Department for Promotion of Industry and Internal Trade, is the nodal department under the Ministry of Commerce and Industry that frames India's industrial policy, administers the consolidated FDI policy, and runs the Startup India programme. Renamed from the Department of Industrial Policy and Promotion (DIPP) in January 2019, it also oversees intellectual property rights, the National Single Window System, and initiatives such as Make in India. For most businesses, DPIIT matters as the authority that grants official "startup" recognition, which unlocks tax and regulatory benefits.
What DPIIT recognition covers
An entity qualifies for DPIIT recognition if it is a private limited company, registered partnership firm, or LLP; is within 10 years of incorporation; has annual turnover not exceeding Rs 200 crore in any financial year since incorporation; and is working towards innovation or a scalable model with potential for employment or wealth creation. It must not have been formed by splitting up or reconstructing an existing business. A February 2026 DPIIT notification doubled this ceiling from Rs 100 crore and introduced a separate Deep Tech Startup category. Recognition is applied for online through the Startup India portal.
Key benefits
- Income-tax holiday under Section 140 of the Income-tax Act, 2025 (the old Section 80-IAC): 100% deduction on profits for any three consecutive years within the first ten. Budget 2025-26 extended eligibility to startups incorporated before 1 April 2030.
- Self-certification for compliance under specified labour and environmental laws.
- IPR support, including rebates and fast-tracked patent and trademark examination.
- Relaxed public-procurement norms and easier exit.
Note on angel tax
DPIIT recognition was historically used to claim exemption from angel tax under Section 56(2)(viib). That provision has been abolished for all investors for share issues on or after 1 April 2024, so this particular exemption is no longer needed.
Key Points
- Recognizes start-ups
- FDI policy formulation
- Start-up India nodal agency
- Under Ministry of Commerce
- Earlier known as DIPP