• This move aimed at strengthening India’s innovation ecosystem and supporting the next phase of startup growth.

Key Changes:
Increase in turnover threshold: As per the new norms, the Government of India(GoI) has increased the turnover threshold for startup recognition from Rs 100 crore to Rs 200 crore.
Inclusion of Cooperative Societies: As per the revised norms, cooperative entities like: Multi-State Cooperative Societies registered under the Multi-State Cooperative Societies Act, 2002, as well as Cooperative Societies registered under State and Union Territory (UT) Cooperative Acts, are now eligible for startup recognition, subject to fulfilment of other applicable criteria.
New sub-category: The revised framework has introduced a new sub-category of ‘Deep Tech Startup’ for entities working on cutting-edge (advanced) and emerging technologies.
Eligibility Criteria for new sub-category: Considering the long gestation periods, high Research and Development (R&D) intensity and capital requirements of deep technology ventures, the GoI has expanded the eligibility criteria for new Deep Tech Startup category:

• Extension of Age Limit: The age limit has been extended from the existing 10 years to 20 years from the date of incorporation or registration.
• Increase in Startup Turnover Limit: Also, the startup turnover limit has been increased to Rs 300 crore.

Key Restrictions on Use of Funds: During the recognition period, the startups are prohibited from investing in residential real estate, non-core land and buildings, loans and advances unrelated to the core business, capital contributions to other entities, among others.
Tax Benefits: DPIIT has clarified that recognised startups, including deep tech firms will now have the option to apply for income-tax exemptions under Section 80-IAC of the Income Tax (IT) Act, 1961 subject to certification by the Inter-Ministerial Board.