Startup Advisory
DPIIT Recognition After G.S.R. 108(E): ₹200 Crore, Deep Tech, and Cooperative Societies
Lekha Editorial Team
CA-reviewed · Published
Most published guidance on DPIIT recognition still states the 2019 thresholds. Those were superseded in February 2026, and the changes are wide enough that companies which correctly concluded they were ineligible should reassess.
What changed
G.S.R. 108(E) dated 4 February 2026 superseded G.S.R. 127(E) of 19 February 2019. Three changes matter.
The turnover ceiling doubled, from ₹100 crore to ₹200 crore in any financial year since incorporation. A Deep Tech category was created, carrying a 20-year recognition window instead of 10 and a ₹300 crore ceiling. And Cooperative Societies and Multi-State Cooperative Societies were added to the eligible entity types alongside Private Limited Companies, LLPs and Registered Partnership Firms.
- Turnover ceiling: ₹100 crore → ₹200 crore (₹300 crore for Deep Tech)
- Recognition window: 10 years (20 years for Deep Tech)
- Entity types: Cooperative and Multi-State Cooperative Societies added
- Sole proprietorships and HUFs remain ineligible
The Deep Tech category, and what does not qualify
Deep tech companies typically spend years in research before earning revenue. Under a 10-year window, a semiconductor or biotech startup could exhaust its recognition period before commercialising anything — losing benefits precisely when it began to scale. The 20-year window is designed around that development cycle.
Qualifying fields typically include artificial intelligence and AI infrastructure, quantum computing, semiconductors, biotechnology, advanced materials, space technology and robotics. The common thread is a core technical or scientific advance.
Building a product using existing technology does not qualify. A SaaS platform with an AI feature is a standard startup. A company developing novel model architectures, chip designs, or new materials is the intended case. DPIIT assesses the substance of the technical claim, so the innovation statement carries more weight here than in an ordinary application.
Two turnover figures that are easy to confuse
DPIIT recognition and the Section 80-IAC tax holiday have different turnover thresholds, and conflating them is a common error.
Recognition permits turnover up to ₹200 crore (₹300 crore for Deep Tech). The Section 80-IAC holiday keeps its own, lower ₹100 crore condition in the year for which the deduction is claimed. A startup can therefore remain DPIIT-recognised while ceasing to qualify for the tax holiday in a given year.
The holiday also requires incorporation before 1 April 2030 — extended by five years by the Finance Act 2025 — and a separate Inter-Ministerial Board certificate. Minimum Alternate Tax under Section 115JB still applies at 15% of book profits during the holiday.
Key takeaway
The 2026 framework widened eligibility substantially. If you assessed DPIIT eligibility against the 2019 rules and concluded you did not qualify, that conclusion may no longer hold.
Frequently asked questions
We crossed ₹100 crore and assumed we were no longer eligible. Are we?
Possibly. The ceiling is now ₹200 crore in any financial year since incorporation, or ₹300 crore if you qualify as a Deep Tech startup. If you are within 10 years of incorporation (20 for Deep Tech) and under the current ceiling, reassess.
How do we know whether we count as Deep Tech?
The test is whether the company rests on a core technical or scientific advance rather than a business-model innovation built on existing technology. Using AI in a product does not qualify; developing novel architectures, chip designs or materials does. If you are near the standard 10-year or ₹200 crore limits and have a genuine deep-technology basis, assess this before recognition lapses — it is a further decade of eligibility.
Is the Angel Tax exemption still a reason to get recognised?
No. Section 56(2)(viib) was abolished by the Finance Act 2024 with effect from 1 April 2025, so there is no Angel Tax for any company, recognised or not. Recognition remains valuable for the Section 79 loss carry-forward relaxation, self-certification, IPR benefits, Seed Fund access, and Section 80-IAC eligibility.