Turnover Thresholds for Start-Up Tax Holiday: Changes in 2026 and Implications for Funded Start-Ups

Introduction : Startup founders and their advisors have been grappling with the implications of changes in DPIIT recognition rules during the first half of 2026, seeking to understand both what has changed and what has not. According to the notification dated 4 February 2026, the turnover threshold for recognition as a startup has been doubled, which is positively received by the growth-stage companies. However, the turnover thresholds applicable to claiming tax holiday under Section 80-IAC...