New definition of Start Ups

 DPIIT Issues Revised Startup & Deep Tech Startup Framework | Notification dated 4 February 2026

The Ministry of Commerce and Industry, through the Department for Promotion of Industry and Internal Trade (DPIIT), has issued Notification G.S.R. 108(E) dated 4 February 2026, superseding the earlier Notification dated 19 February 2019.

Key Highlights:

1. Revised Definition of “Startup”
An entity shall qualify as a Startup if it:

• Is incorporated as a Private Limited Company, LLP, Partnership Firm, Multi-State Cooperative Society, or Cooperative Society in India;

• Is within 10 years from incorporation/registration;

• Has turnover not exceeding ₹200 crore in any financial year since incorporation; and

• Is engaged in innovation, development, improvement of products/services/processes, or operates a scalable business model with high employment or wealth creation potential.

An entity formed by splitting or reconstruction of an existing business shall not qualify.

2. Introduction of “Deep Tech Startup” Category
A Deep Tech Startup:

• May qualify for up to 20 years from incorporation;

• May have turnover up to ₹300 crore;

• Must demonstrate high R&D intensity, ownership/creation of significant IP, scientific/engineering innovation, long gestation cycles, and technical uncertainty.

Deep Tech Startups are deemed Startups for all purposes unless otherwise specified.

3. Recognition Process
Recognition shall be granted by DPIIT upon application through its portal, subject to document verification and inquiry.

4. Certification under Section 80-IAC of the Income-tax Act
Eligible Startups (Private Limited Companies and LLPs) may apply to the Inter-Ministerial Board for certification for tax benefits under Section 80-IAC of the Income-tax Act, 1961 (noting that the Income-tax Act, 2025 shall apply from 1 April 2026).

5. Restrictions on Deployment of Funds
Recognised Startups are prohibited, during the recognition period, from investing in specified non-core assets such as:

• Residential property (with limited exceptions),

• Non-core land/buildings,

• Loans and advances (except in ordinary course),

• Speculative assets,

• Luxury assets, high-value vehicles, jewellery (unless stock-in-trade).

6. Revocation & Relaxation
Certification may be revoked if obtained through false information. The Central Government retains powers to relax or modify conditions in special circumstances.

Effective Date: The notification is effective from the date of its publication in the Official Gazette (4 February 2026).

Maha abolishes NA permission

🏡 Maharashtra Abolishes NA Permission and Annual NA Tax
Government Resolution dated 10 February 2026

The Revenue and Forest Department of the Government of Maharashtra has issued a significant Government Resolution pursuant to the amendments introduced under the Maharashtra Land Revenue Code (Second Amendment), 2025, effecting substantial reforms in the regulatory framework governing non-agricultural (“NA”) land use within the State.

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1. Dispensation with Separate NA Permission

Where development permission or approval of building plans has been duly granted under the Maharashtra Regional and Town Planning Act, 1966 (“MRTP Act”), the requirement of obtaining a separate NA permission or NA sanad from the jurisdictional Collector under the Maharashtra Land Revenue Code stands dispensed with.

Accordingly, the grant of development permission under the MRTP Act shall be deemed sufficient authorization for non-agricultural use of the subject land.

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2. Abolition of Annual NA Tax and Waiver of Arrears

The annual non-agricultural assessment (NA tax) hitherto leviable on non-agricultural lands has been abolished with immediate effect.

Further, all outstanding NA tax dues up to the date of enforcement of the amendment have been waived, thereby extinguishing existing arrears.

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3. Introduction of One-Time Conversion Premium

In substitution of the recurring NA tax, a one-time conversion premium shall be levied, calculated on the basis of the land area and prevailing market value, at the following rates:

• Up to 1,000 sq. m. — 0.90%

• 1,001 to 4,000 sq. m. — 0.25%

• Above 4,000 sq. m. (approximately 1 acre and above) — 0.50%

The premium shall be payable at the time of conversion and shall constitute full and final discharge of liability towards non-agricultural assessment.

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4. Apportionment of Premium Revenue

The conversion premium collected shall be apportioned between the State Government and the concerned local authority in the following manner:

• Class “A” Municipal Corporations — 30% to the Municipal Corporation

• Other Municipal Councils / Nagar Panchayats — 50% to the local body

• Gram Panchayat areas — 50% to the Zilla Parishad, to be shared equally with the Gram Panchayat

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5. Directions to Banks and Financial Institutions

Banks and financial institutions shall not insist upon production of an NA sanad as a precondition for extending credit facilities, provided that valid development permission under the MRTP Act has been granted.

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Legal and Practical Implications

• Elimination of duplicative approvals under separate statutory regimes.

• Reduction in procedural delays and compliance burden for landholders and developers.

• Replacement of recurring assessment with a transparent, one-time fiscal levy.

• Strengthening of local self-governance institutions through structured revenue sharing.

This reform represents a material shift in Maharashtra’s land administration regime and aligns regulatory processes with the principles of administrative efficiency and ease of doing business.

Source: Government Resolution, Revenue & Forest Department, Government of Maharashtra, dated 10 February 2026.