DPIIT Startup Definition 2026: ₹200 Cr and Deep Tech

Being a DPIIT-recognised startup unlocks tax benefits, lower IP fees and easier access to government schemes. On 4 February 2026, the Department for Promotion of Industry and Internal Trade (DPIIT) replaced the 2019 definition of a "startup" with a new notification, G.S.R. 108(E). It raises the turnover limit, adds a Deep Tech category, and puts new limits on how startups use their funds.

This guide explains the changes and what they mean for your recognition, your tax position and your patent and trademark fees. It is based on published summaries of the notification, listed under Sources. Please read the Gazette text and the DPIIT portal guidance for your own case.

Quick summary

G.S.R. 108(E), dated 4 February 2026, replaces the 2019 notification (G.S.R. 127(E)) and took effect on publication.
A startup can now have a turnover of up to ₹200 crore in any financial year, up from ₹100 crore. Recognition lasts up to 10 years.
A new Deep Tech Startup category gets up to 20 years and a ₹300 crore turnover ceiling.
Cooperative societies, including multi-state ones, are now eligible.
A negative list limits how startups may use their funds, and a recognition obtained on false information can be revoked.
Patent fees for startups are about 80% lower, and trademark e-filing fees are half the standard rate.

What changed

Turnover and age. A startup can be recognised for up to 10 years from incorporation or registration. Its turnover must not exceed ₹200 crore in any financial year since incorporation. Published summaries say turnover is measured from audited accounts, under section 2(91) of the Companies Act, 2013, and not from GST returns. The test works in one direction. Crossing ₹200 crore in any year ends the startup status, even if turnover falls later.

Eligible entities. Private limited companies, LLPs, registered partnership firms and cooperative societies (state, UT or multi-state) can apply. Each must also pass the purpose test: innovation, development or improvement of products, processes or services, or a scalable business model with high potential for employment or wealth creation. An entity formed by splitting up or reconstructing an existing business is excluded.

Deep Tech Startups. An entity qualifies as a Deep Tech Startup if it meets all the startup tests plus four attributes:

It works on a solution built on new or advancing scientific or engineering knowledge.
It spends a high share of its revenue or funding on research and development.
It owns, or is creating, significant novel intellectual property and is taking steps to commercialise it.
It faces long development timelines, high capital needs and large technical uncertainty.

The notification sets no numerical R&D thresholds. DPIIT's framework and portal guidance will decide how this is assessed, so applicants need to upload evidence for each attribute.

The new rules on using your funds

A startup must use its funds primarily for its core business, innovation, research, scaling or operations. During the recognition period, it should not invest in the following unless they are integral to the core business:

A residential house or land attached to it
Land or buildings that are not residential
Loans and advances
Capital contributions to other entities
Shares and securities
Motor vehicles, aircraft, yachts or other high-value transport
Jewellery or other luxury assets
Other speculative or non-productive assets notified by the government

The summaries we read do not say what the consequence of a breach would be. Treat the list as a real constraint and write it into your treasury policy.

Revocation and existing startups

If a tax certificate was obtained on false information, the Board may revoke it, and a revoked certificate is treated as never issued. Any deduction claimed on it is then exposed.
The notification has no separate transition clause for startups recognised under the 2019 framework. Published summaries advise assuming the new conditions apply from 4 February 2026, and checking on the DPIIT portal how existing recognitions are treated.

Tax benefits

Under the Income-tax Act, 2025, the startup deduction sits in section 140 for tax year 2026-27 onward. Section 80-IAC of the 1961 Act governs earlier years. In summary:

The deduction is 100% of profits from the eligible business, for any three consecutive years out of the first ten years from incorporation, at the taxpayer's option.
Only recognised private limited companies and LLPs can claim it. Partnerships and cooperatives cannot.
The company must be incorporated on or after 1 April 2016 and before 1 April 2030.
A separate certificate from the Inter-Ministerial Board is required. DPIIT recognition alone is not enough.
Guides disagree on the turnover limit for the deduction. One summary of the Finance Act, 2026 gives ₹300 crore, while others still show ₹100 crore. Read the final text of section 140.

Angel tax was abolished from assessment year 2025-26, so it is no longer a reason to seek recognition.

What it means for your IP fees

Recognition also lowers your costs at the patent and trademark offices. These figures come from published guides, so confirm them against the current fee schedules.

Patents. The reduced fee column for startups, small entities, individuals and educational institutions is set at about 20% of the standard column. Examples for e-filing include:

Patent application (Form 1): ₹1,600, against ₹8,000.
Request for examination (Form 18): ₹4,000, against ₹20,000.
Expedited examination (Form 18A): ₹8,000, against ₹60,000.
Renewal for years 3 to 6: ₹800 a year, against ₹4,000.

You claim the lower fee by filing Form 28 with your DPIIT recognition certificate. A startup can also ask for expedited examination under Rule 24C of the Patents Rules. If the Patent Office is not satisfied with your evidence of status, the fee can be reassessed at the full rate, and fees already paid are generally not refunded.

Trademarks. Published guides say that e-filing costs ₹4,500 per class for individuals, startups and MSMEs, against ₹9,000 per class for companies and LLPs.

Support schemes. The Scheme for Facilitating Start-ups Intellectual Property Protection (SIPP), which reimbursed facilitator fees, ran until 31 March 2026. One guide reported that as of 20 August 2026 it had not been extended or replaced. Check the CGPDTM and Startup India websites for the latest position before you budget for professional fees.

What to do now

Check your turnover against ₹200 crore, using audited accounts. If you are close, plan for the day you cross it.
Review where your money goes. Compare your investments and loans with the negative list.
Keep your records ready. Audited accounts, the business write-up and evidence of innovation are the core of any recognition or tax claim.
Consider Deep Tech if your product rests on a scientific or engineering advance. Collect evidence of your R&D spending, IP and timelines.
File IP applications with Form 28 and your recognition certificate, so you get the lower fees from the start.
Confirm your tax claim. If you plan to use section 140, apply separately to the Inter-Ministerial Board.

Frequently asked questions

Is my existing DPIIT certificate still valid?

The notification has no separate clause for existing recognitions. Check the DPIIT portal for how your certificate is treated.

Does a partnership firm get the tax deduction?

No. Only recognised private limited companies and LLPs can claim it, according to the summaries we read.

What happens if my turnover passes ₹200 crore?

You lose startup status, even if turnover falls in later years. A Deep Tech Startup has a ₹300 crore ceiling.

Can I get the lower patent fee without DPIIT recognition?

Small entities and individuals qualify for the reduced column too, so recognition is one of several routes.

This article is general information and not legal advice. Notifications and fee schedules change, so confirm the position for your own startup with a professional.

Not sure whether your startup still qualifies, or how to claim the IP fee benefits? Talk to the StartupKaro team about your recognition and IP filings.

Sources

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DPIIT's New Startup Definition (2026): ₹200 Crore Limit, Deep Tech Status and What It Means for Your IP Fees