Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
The ₹100 crore test
DPIIT recognition requires turnover to be below ₹100 crore in each financial year since incorporation. It is tested year by year, not as an average. This threshold can change by notification — confirm the current figure.
It works alongside the 10-year limit
Two conditions run in parallel: the 10-year age limit and this turnover test. Whichever you breach first ends your startup status — so a fast-scaling company can ‘graduate’ on turnover well before 10 years are up.
A worked example
Take a startup incorporated in 2021 that grows from ₹5 crore of turnover to ₹120 crore by its sixth year. In the year turnover crosses ₹100 crore, it stops being a recognised startup — and from that point it cannot start a fresh 80-IAC claim or rely on startup-specific relaxations. Note the test is applied year by year on each year’s turnover, not on a cumulative or average basis, so a single big-contract year can tip you over even if later years fall back. This is why fast-scaling companies should plan their tax holiday and other benefits for the earlier, lower-turnover years, while they clearly qualify, rather than leaving them to chance. It also pays to track turnover against the limit through the year, not just at year-end, so a large order in the final quarter does not catch you by surprise. Our startup service can model when you are likely to cross the threshold and sequence your benefits accordingly.