A Kerala-based startup, Fuselage Innovations Pvt Ltd, which builds drones and drone-based services, has been granted the 80 IAC tax exemption by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Startup India initiative.
Only 187 startups from across the country have made the cut so far. That makes Fuselage one among a tiny group of firms that could benefit from a full income tax waiver for three consecutive years—anytime within the first ten years of its incorporation.
Startups that qualify under Section 80 IAC of the Income Tax Act are eligible for a 100% tax break on profits for three out of their first ten years, provided they meet certain innovation and scalability criteria set by DPIIT.
While the exemption isn’t automatic and requires DPIIT certification, it’s seen as a way for young businesses to grow without the early burden of income tax. For bootstrapped firms or early-stage tech startups like Fuselage, this can ease cash flow pressures and help them focus on scaling or R&D.
Fuselage believes the tax relief could help it deliver affordable drone services to sectors like agriculture and local bodies. The company has been focusing on “taking drone tech to the grassroots”, with applications like precision farming and training.
There are also government-linked subsidy options for such use cases—ranging anywhere between 40% and 80%, depending on the purpose and policy. So there’s a chance that end-users, especially farmers or local panchayats, could benefit from cheaper drone access.
