Under Notification G.S.R. 127(E) dated 19 February 2019 (as amended), an entity is a startup if it is incorporated or registered not earlier than 10 years ago, has turnover not exceeding ₹100 crore in any financial year, works towards innovation or improvement of products, processes or services, and is not formed by splitting or reconstructing an existing business. This checker applies those tests before you file.

DPIIT recognition is the gateway to the tax holiday under s.140 of the Income-tax Act 2025 (formerly s.80-IAC): a 100% deduction of profits for 3 consecutive assessment years out of the first 10 from incorporation — but you also need a separate Inter-Ministerial Board certificate for the tax benefit. Recognition alone doesn't grant the holiday; the checker walks both requirements.

No — the angel tax under s.56(2)(viib) of the Income-tax Act 1961 was abolished with effect from 1 April 2024 by the Finance Act 2024. Shares issued on or after that date carry no angel-tax exposure regardless of valuation, investor type, or DPIIT status, for domestic and foreign investors alike. The checker confirms this so you don't structure around a dead provision.

Recognised startups get access to Startup India funds and government procurement preference, plus the capital-gains exemption on eligible transfers under s.54GB of the Income-tax Act 1961 and exemption from the need for an investment certificate in some state schemes. The tax holiday and these benefits make the DPIIT application worth doing even though angel tax is gone.

Recognition holds while the entity continues to satisfy the startup definition — roughly 10 years from incorporation, subject to the ₹100 crore turnover cap in any financial year. Once turnover breaches the cap or the entity stops meeting the innovation test, recognition lapses and the tax benefits stop applying from that year.