The central government has made important changes in the rules to provide more benefits to deeptech startups. Such companies, which take more time for research, will now get startup recognition for up to 20 years. In addition, their annual turnover limit has been increased to Rs 300 crore. However, for regular startups, the period will be 10 years and the turnover limit will continue to be Rs 200 crore.

Companies that implement innovative ideas in the field of science and technology and spend more money on research and development (R&D) are considered deeptech. They can apply for tax exemptions under Section 80-IAC of the Income Tax Act. For this, the approval of a special board comprising officials of various ministries is required.

To get these benefits, the government has strictly instructed that companies should use the funds only for business growth and research and not for things like purchasing land. Experts say this new change will help Indian science and technology startups get more investment and grow globally.