Law and policy changes that actually matter to startups, and what to do about each one. Reviewed by a practising Company Secretary.
The new Act replaces the Income-tax Act, 1961. Section numbers, form names and some terms have changed. Update invoices, contracts, payroll software and TDS processes that refer to old section numbers.
How we can helpA company with paid-up capital up to ₹10 crore and turnover up to ₹100 crore can now be a “small company”, with lighter compliance such as fewer board meetings and no cash-flow statement. Check if your company now qualifies.
How we can helpThe Codes on Wages, Social Security, Industrial Relations and Occupational Safety replace 29 older labour laws. Review salary structures (the “wages” definition), appointment letters and PF/ESI coverage.
How we can helpMost goods and services now fall under 5% or 18%, with 40% for luxury and sin goods. Check the rate for every HSN/SAC code in your billing software.
How we can helpThe Credit Guarantee Scheme for Startups now covers loans up to ₹20 crore per borrower (from ₹10 crore), making collateral-free debt easier for DPIIT-recognised startups.
How we can helpMicro: investment up to ₹2.5 crore and turnover up to ₹10 crore. Small: ₹25 crore / ₹100 crore. Medium: ₹125 crore / ₹500 crore. Many businesses can now update their Udyam category.
How we can helpEligible DPIIT startups incorporated before 1 April 2030 can claim a 100% profit deduction for 3 consecutive years out of their first 10 (formerly Section 80-IAC). Approval from the Inter-Ministerial Board is required.
How we can helpTax on share premium received above fair value from resident investors (old Section 56(2)(viib)) no longer applies from FY 2024-25. Valuation reports are still needed for FEMA and company law.
How we can helpLast reviewed: October 2026. Dates are when the change took effect or was announced.
Send us the update: we’ll tell you in plain language what, if anything, you need to do.