India · checked every month
Startup India schemes, tax breaks and loans: the 2026 guide
The central government's startup schemes, tax breaks and credit guarantees, in the order founders usually meet them, each with a full guide built from the official pages.
Independent guides; not affiliated with DPIIT or any ministry. Confirm on the official portal before applying.
Startup India, in numbers
- 80-IAC: tax deduction on profits
- 100%
- CGSS: max guarantee per borrower
- ₹20 Cr
- DPIIT: startup age limit
- 10 years
- to get DPIIT recognition
- Free
Where to start
- 1
Incorporate as a private limited company or LLP. DPIIT recognition is also open to registered partnership firms, but the 80-IAC tax holiday is only for private limited companies and LLPs, and venture investors expect a private limited company.
- 2
Get DPIIT recognition. It's free and applied for online, and it unlocks the tax holiday, the credit guarantee scheme, self-certification under several labour and environmental laws, and faster patent examination.
- 3
Fund the first steps. The Seed Fund Scheme gives early-stage money through selected incubators; grants such as BIRAC BIG and iDEX suit specific sectors.
- 4
Raise venture money. The Fund of Funds for Startups backs SEBI-registered funds rather than startups directly, so it shows up as more venture capital in the market.
- 5
Borrow without collateral. The Credit Guarantee Scheme covers loans from member banks, NBFCs and funds to DPIIT-recognised startups.
- 6
Claim the tax holiday once profitable. Section 80-IAC deducts 100% of profits for three consecutive years out of your first ten, after approval from the Inter-Ministerial Board.
Every scheme, with its guide
All guides →Start here
DPIIT startup recognition: eligibility, apply, benefits
- 10 years
- Startup age limit
- INR 200 Cr
- Turnover limit
Step-by-step guide on DPIIT startup recognition eligibility, documents, application process on NSWS, and benefits unlocked
Checked 16 October 2026 · Read the guide →
Tax
Section 80-IAC tax exemption for Indian startups
- 100%
- tax deduction on profits
- 3 years
- consecutive exemption period
Eligible startups get 100% tax deduction for 3 years. Check conditions, documents, and steps to apply to the Inter-Ministerial Board.
Checked 19 October 2026 · Read the guide →
Loans
Credit Guarantee Scheme for Startups: Limits & Eligibility
- ₹20 crore
- Maximum guarantee per borrower
- 85%
- Guarantee cover for loans up to ₹10 crore
CGSS provides collateral-free loan guarantees up to ₹20 crore for DPIIT-recognised startups via banks, NBFCs, and AIFs.
Checked 21 October 2026 · Read the guide →
The rules behind the money
All explainers →Tax and foreign-investment rules that shape every Indian funding round, explained with examples.
- Angel tax in India: what it was, and what still matters after abolition →Angel tax taxed share premium above fair market value. How DPIIT startups were exempted, its abolition from April 2025, and what founders must still check.
- Foreign investment in Indian startups: FDI routes, pricing and filings →How foreign investment into Indian startups works: automatic vs government route, fair value pricing, allowed instruments, FC-GPR and other RBI filings.
- CCPS vs CCD: the convertible instruments behind Indian VC rounds →Compulsorily convertible preference shares and debentures compared: how each works, why VCs favour CCPS, interest, conversion and FEMA treatment.
- Reverse flipping: why Indian startups are moving their parent company home →Why Indian startups moved their holding company abroad, why many are now moving back to India, how a reverse flip is done, and the tax and approvals involved.
- 409A valuation explained, and India's ESOP equivalent →A 409A valuation sets the fair market value of a US startup's common stock for stock options. What it is, when you need one, and how ESOP valuation works in India.
- Startup due diligence checklist: what investors check in an Indian round →What investors check in due diligence on an Indian startup: corporate records, cap table, ROC filings, finances, tax, IP, contracts, employees and FEMA.
Questions founders ask
Which scheme should an Indian startup apply for first?
DPIIT recognition. It's free, it's applied for online, and it's the entry ticket for most of the others on this page: the Section 80-IAC tax holiday and the Credit Guarantee Scheme both require it.
Does the government invest in startups directly?
Mostly not. The Fund of Funds for Startups invests in SEBI-registered Alternative Investment Funds, which then invest in startups, and the Seed Fund Scheme gives money through selected incubators. Grants such as BIRAC BIG and iDEX fund startups directly, in specific sectors.
Is angel tax still a problem for startups?
The Union Budget of July 2024 abolished angel tax for all classes of investors. Valuation reports still matter for other reasons, such as pricing shares issued to foreign investors. Our angel tax explainer covers what changed.
How current is this page?
Each scheme links to a guide built from the scheme's official pages and re-checked every month; each card shows when it was last checked. Rules change, so confirm on the official portal before you apply.
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Keep exploring
- ExplainerAngel tax in India: what it was, and what still matters after abolition →Angel tax taxed share premium above fair market value. How DPIIT startups were exempted, its abolition from April 2025, and what founders must still check.
- ExplainerCCPS vs CCD: the convertible instruments behind Indian VC rounds →Compulsorily convertible preference shares and debentures compared: how each works, why VCs favour CCPS, interest, conversion and FEMA treatment.
- Guide hubFounder guides →Credits, accelerators and government schemes, from the official pages.
- CalculatorStartup dilution calculator →How much founders own after each round, including option pool top-ups.