DPIIT's Gazette Notification G.S.R. 108(E) dated 4 February 2026 superseded the 2019 framework, raising the standard startup turnover ceiling from Rs 100 crore to Rs 200 crore while keeping the 10-year recognition window. It also created a new 'Deep Tech Startup' category for R&D- and IP-intensive ventures with a Rs 300 crore turnover cap and recognition for up to 20 years from incorporation. Cooperative societies now qualify, and a negative list bars startups from deploying capital into real estate, luxury/speculative assets, and non-core financial activities.
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DPIIT redefines 'startup': turnover cap raised to Rs 200 cr, new 20-year Deep Tech class
Why this matters for founders
Founders who previously aged out of DPIIT recognition can re-check eligibility under the higher Rs 200 crore cap, and deep-tech founders should apply under the new category to secure up to 20 years of Section 80-IAC tax-holiday and benefit access. Review your fund-utilisation plans to stay clear of the new negative list.
Source: TaxGuru
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