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Aditya Narayan

Aditya Narayan enjoys decoding tax laws and keeping an eye on what is happening in India's startup ecosystem. He has written over 400 blogs and simplifying complex subjects across income tax, personal finance, governance, and business growth. His interests also bring together finance and creativity - whether that is writing poems, short stories, or looking at the intersect between art, culture, and economics.

Latest Trends in Startup Funding in India: 2025

Latest Trends in Startup Funding in India: 2025

Posted on: by: Aditya Narayanin: Startup Updates1 Comment

Startup Funding Trends in India 2025

A dynamic combination of sectoral shifts, strategic capital allocation, and cautious investor sentiment characterises . India’s startup funding environment in 2025. The ecosystem is resilient and promising despite some volatility, thanks to targeted investments in high-potential startups and industries. This expert analysis, offers thorough insights into the most recent trends influencing startup funding in India this year.

1. Funding Overview: Growth Amid Volatility

The Indian startup funding chart in 2025 has been a rollercoaster ride. Following a robust bounce in Q1, when startups collectively raised between $2.5 billion and $3.1 billion—a 40% increase year-on-year—April saw a steep drop to $745 million, down 58% from January. But May bounced back strongly, crossing the $1 billion mark, driven by big deals in logistics and healthtech spaces.

This volatility is a sign of a more general rebalancing in investor strategy, away from indiscriminate growth chasing and towards a more disciplined, fundamentals-based approach to investment.

2. Shift in Investor Mindset: From Growth to Profitability

The most notable trend in 2025 is the change in investor thinking. Capital continues to be present but selectively invests in those startups that have clear revenue strategies, profitability trajectories, and sector differentiation. That is:

  • Late-stage startups remain to dominate the lion’s share of funding, with mega-rounds now increasingly becoming the norm. For instance, delivery company Porter raised $200 million, and Citykart raised $63 million in growth-stage funding in May.
  • Seed-stage investment has tightened significantly, with heightened wariness towards early-stage businesses. The seed funding decreased to $3.2 million in four startups last week from $27.6 million before.
  • Investors are preferring startups with healthy fundamentals, viable business models, and the ability to create value in the longer term over scaling quickly at the cost of everything.

3. Sectoral Trends: Healthtech, Logistics, Fintech, and AI Lead

Certain sectors are driving the funding momentum in 2025:

  • Healthtech has proven to be a major growth sector, with companies such as PB Healthcare raising $218 million, with an indication of growing investor optimism in healthcare tech.
  • Logistics and supply chain technology remain a draw for major investments, exemplified by Porter’s $200 million Series F round and other transactions in the sector.
  • Fintech is resilient, with early-stage companies such as Saarthi Finance raising substantial Series A capital, reflecting continued interest in product differentiated financial services.

AI and enterprise technology are gaining popularity as investors search for startups that are using innovative technologies to tackle intricate challenges.

4. Rise of New-Age Investors: Family Offices and Corporate VCs

2025 has also witnessed significantly higher participation from family offices and corporate venture capital (CVC) funds like Premji Invest, Flipkart Ventures, and Salesforce Ventures. These investors offer patient capital and strategic assistance, tending to prefer technology-oriented and sustainable startups. These investors’ participation is enabling startups to overcome funding hurdles and scale up across the world.

5.IPO Preparations and Exit Opportunities

With 23 startups lining up for IPOs in 2025, the ecosystem is also experiencing a maturation phase whereby investors are looking at exits via public markets. This is affecting funding dynamics with some capital shifting away from private rounds towards listings publicly, adding to the conservative investment climate experienced in mid-2025.

6. Geographic and Stage-wise Funding Distribution

  • Growth and late-stage funding dominate , accounting for over $637 million in May alone, indicating investor preference for more established startups.
  • Early-stage financing is still substantial but is under pressure, dropping 24% from a quarter-on-quarter basis in Q1 2025.
  • Seed-stage capital is under stress, so startups need to show traction within a short time to secure capital.

7. Government Initiatives and Ecosystem Support

Government actions and initiatives remain supportive of the startup ecosystem, delivering regulatory support, funding incentives, and infrastructure development. These are foundational to the positive long-term picture in the face of short-term funding volatility.

Conclusion

The Indian startup funding scenario in 2025 is marked by strategic capital allocation, industry concentration, and a shift towards sustainable growth. Although volumes have seen fluctuations, the overall direction is towards a mature ecosystem where investor restraint and company fundamentals are at the forefront. Healthtech, logistics, fintech, and AI are the spaces to watch, backed by increasing numbers of family offices and corporate VCs. For entrepreneurs, meeting investor expectations in profitability and defined business models is important to acquire funding

E-Way Bill: Rules, Compliance, and Common Challenges

 WHAT IS E-Way Bill SYSTEM?

Posted on: by: Aditya Narayanin: Indirect TaxLeave a reply

E-Way Bill: Rules, Compliance, and Common Challenges

A key component of India’s Goods and Services Tax (GST) framework, the E-Way Bill was created to facilitate the flow of goods throughout the nation. Real-time tracking of goods in transit and the prevention of tax evasion are the two main goals of the e-way bill system.

This article offers a thorough overview of e-way bill regulations, compliance standards, and typical business difficulties. Knowing how the e-way bill portal operates is crucial for hassle-free operations, regardless of your role as a manufacturer, trader, or transporter.

What is an E-Way Bill?

For the transportation of goods valued at more than ₹50,000, an electronic document known as an E-Way Bill is necessary. It must travel with the goods and is created on the e-way bill portal (https://ewaybillgst.gov.in).

Applicability of E-Way Bill

When is an E-Way Bill Required?

  • Transportation of goods between states (interstate) or within a state (intra-state)
  • Over ₹50,000 is the value of the consignment (which could be for one invoice or several invoices in one vehicle).
  • Job work consignments or e-commerce transactions

Who Should Generate the E-Way Bill?

  • Those who have registered: When products are delivered by courier or in their own or rented car
  • Transport :  If the e-way bill has not been created by the supplier
  • Unregistered individuals: When delivering to a registered individual

How to Generate E-Way Bill – Step-by-Step

You can generate an e way bill using:

Steps to Generate E-Way Bill on Portal:

  1. Login to ewaybillgst.gov.in
  2. Go to E-Way Bill > Generate New
  3. Fill details like:
    • GSTIN of supplier/recipient
    • Invoice number & date
    • Value of goods
    • HSN code
    • Transporter details (vehicle number, mode of transport)
  5. Click “Submit” and a unique 12-digit EWB number will be generated.

Validity of E-Way Bill

Distance (in KM)

Validity

Up to 100 km

1 day

Every additional 100 km

+1 day

Note: For over-dimensional cargo (ODC), different rules apply.

E-Way Bill Compliance Rules

1. Carry E-Way Bill During Transit

  • The driver must carry the e way bill (physical copy or EWB number).

2. Part-B is Mandatory for Transport

  • Part-B (vehicle number) is required before goods are transported.

3. Updating Vehicle Number

  • If the vehicle changes en route, the EWB must be updated.

4. Cancellation

  • E-way bill can be cancelled within 24 hours of generation (if goods were not transported).

5. Consolidated E-Way Bill

  • If multiple consignments are being transported in one vehicle, a consolidated e way bill can be generated.

Penalties for Non-Compliance

  • ₹10,000 or tax sought to be evaded—whichever is higher.
  • Goods and vehicle can be detained or seized.
  • Mandatory penalty for incorrect or expired EWB.

Common Challenges in E-Way Bill Compliance

1. Data Entry Errors

  • Incorrect GSTIN, HSN, or invoice value can invalidate the EWB.

2. Vehicle Number Update Delays

  • Frequent vehicle changes require real-time updates, which many businesses miss.

3. Connectivity Issues

  • Internet or server downtime on the e way bill portal can delay generation.

4. Non-Integration with ERP

  • Businesses not using API integration face delays due to manual entry.

5. Interpretation of Distance & Route

  • Misunderstanding actual distance can lead to early EWB expiry.

Best Practices for Smooth E-Way Bill Compliance

  • Use an API to connect billing or ERP software to the e-way bill system.
  • Develop warehouse and logistics teams
  • Audit EWB records on a regular basis and compare them to invoices.
  • For transactions with a high volume, use the bulk upload feature.
  • Remind people when their EWBs expire and renew.

Conclusion

An essential component of GST compliance in India is the e-way bill system. When used properly, it makes logistics easier and promotes transparency. Businesses can guarantee smooth transportation and stay out of trouble by knowing the regulations, making effective use  of the e-way bill portal, and avoiding typical errors.

Growthinfy offers comprehensive support for GST compliance. Allow us to assist you in becoming more intelligent and staying compliant.

FAQs on E-Way Bill

Q1. Can I generate an E-Way Bill without GST registration?
No, only registered users can generate EWB except in the case of unregistered-to-registered supply.

Q2. Is EWB needed for job work?
Yes, job work transactions also require e way bill generation.

Q3. What if the goods are sent through public transport?
Even then, an EWB is mandatory, and the transporter details must be updated.

What Is Input Tax Credit

Unveil the Hidden Magic of Input Tax Credit (ITC) and Maximize Your GST Benefits

Posted on: by: Aditya Narayanin: Indirect Tax2 Comments

What Is Input Tax Credit (ITC) and How to Claim It?

With the Input Tax Credit (ITC), companies in India can take advantage of an important attribute under the GST system. It grants companies credit for GST paid on purchases or expenses made for business purposes, thereby reducing their overall tax burden. For any company to maximize cash flow and ensure compliance with the act, it will be important that they understand what input tax credit is and how to ask for it under GST.

To make ITC a prime resource for companies in taking full advantage of GST tax planning, we will go through the concept of ITC, its advantages, eligibility requirements, procedure to claim, and recent developments.

What Is Input Tax Credit?

Input Tax Credit refers to the credit a registered taxpayer receives for the GST paid on inputs (goods or services purchased) that are used in the course of business. You can deduct this input tax from your output tax liability (i.e., the GST you collect from customers).

What Is Input Tax Credit under GST with Example?

Suppose you are a manufacturer:

1. GST on your sales (output tax) = ₹10,000
2. GST paid on purchases (input tax) = ₹6,000
3. Net GST payable to government = ₹10,000 – ₹6,000 = ₹4,000

Such adjustment of input tax against output tax is called Input Tax Credit under GST scenario.
Input Tax Credit is that credit which a registered taxpayer gets in respect of GST paid on purchase of inputs (goods or services) used in the course of business. This input tax may be adjusted against the output tax payable (GST charged from customers).

Who Can Claim Input Tax Credit?

To claim ITC, a person must:

  • Register for GST.
  • Have a legitimate tax invoice or debit note on hand.
  • Have received products or services
  • Verify that the supplier has submitted a GSTR-1 and paid GST to the government.
  • Properly file GSTR-3B.
  • Within 180 days of the invoice date, pay the supplier.
  • Not included in the composition scheme
  • Not deduct depreciation from capital goods’ tax component

What Can Be Claimed as Input Tax Credit?

ITC can be claimed on goods and services used only for business purposes. However, there are specific exclusions.

Ineligible ITC under GST (As per Section 17(5) of CGST Act):

  • Motor vehicles for personal use
  • Food and beverages, outdoor catering (unless obligatory under law)
  • Club memberships, health & fitness services
  • Construction of immovable property (except for plant and machinery)
  • Goods lost, stolen, written off, or given as gifts
  • Documents Required to Claim ITC

To claim ITC, maintain the following documents:

  • Tax invoice issued by supplier
  • Debit note (if applicable)
  • Bill of entry (in case of imports)
  • ISD invoice (for input service distribution)
  • Any document as prescribed under GST rules

How to Claim Input Tax Credit Under GST?

Claiming ITC is a step-by-step process that must be done with accuracy to avoid penalties.

Step-by-Step Process to Claim ITC:

  • Reconcile purchase register with GSTR-2B (auto-generated ITC statement)
  • Ensure supplier has filed GSTR-1 and invoice reflects in GSTR-2B
  •  File your GSTR-3B return
  • Report the eligible ITC in Table 4A of GSTR-3B
  • Reverse any ineligible ITC in Table 4B
  • Match and validate using the Invoice Management System (IMS)

Note: From 1st January 2022, provisional ITC is no longer allowed. You can only claim credit for invoices that appear in your GSTR-2B.

Time Limit to Claim ITC

For example, if an invoice is dated 10th March 2025, you must claim ITC by 30th November 2025, or before you file the annual return for FY 2024-25.

  • ITC must be claimed by November 30 of the subsequent fiscal year, OR
    the annual return filing date, whichever comes first.

For instance, you must claim ITC by November 30, 2024, or prior to filing the annual return for FY 2023–2024, if the invoice is dated March 10, 2024.

Reversal of Input Tax Credit

ITC must be reversed in specific situations:

  • Payment to supplier not made within 180 days
  • Goods/services used partly for personal use or exempt supplies
  • Credit notes issued post-supply
  • Capital goods used for both exempt and taxable supplies
  • ITC claimed but later found ineligible or mismatched
  • Such reversals must be reported in GSTR-3B and may attract interest.

ITC Reconciliation – Why It Matters?

ITC reconciliation ensures your GSTR-3B claims match with:

  • Your purchase register
  • The supplier’s GSTR-1 (via GSTR-2B)
  • The Invoice Management System (IMS)

Failure to reconcile accurately may result in GST notices, demand for excess claimed ITC, and potential penalties.

Automating ITC Claims – The Smart Way Forward

With GST compliance becoming more digitized, using automation tools like GST reconciliation software helps:

  • Match invoices across GSTR-2B, IMS, and purchase register
  • Identify mismatches and take corrective actions
  • Auto-calculate ITC reversals
  • Maintain audit trails and documentation
  • This reduces errors, ensures timely filing, and maximizes your eligible ITC.

Current Input Tax Credit Updates (per Union Budget 2025)

  • Section 34 Amendment: If the supplier issues a credit note, the ITC has to be reversed.
  • Section 38 Amendment: Invoice-level validation through IMS is now required after the term “auto-generated” was eliminated.
  • Section 128A Relief: Notification No. 21/2024 exempts certain non-fraudulent ITC claims from 2017–2020 from interest and penalties.

Conclusion

Every GST-registered business in India must comprehend what input tax credit (ITC) is and follow the proper procedure for claiming ITC under GST. In addition to lowering tax outflow, accurate compliance enhances cash flow overall. Using automation tools and keeping up with legal changes will guarantee that you’re always ahead of compliance challenges as the GST law becomes more data-driven and reconciliations more complicated.

FAQs

Q1. Is it possible to claim ITC on capital goods?
Yes, if they are used for business and not claimed as depreciation.

Q2. Can ITC be claimed on exempt supplies?
No, ITC is not allowed for inputs utilized for making exempt supplies.

Q3. What if my supplier fails to file GSTR-1?
You cannot claim ITC unless the supplier files GSTR-1 and it gets reflected in your
GSTR-2B.

Q4. Am I entitled to claim ITC under the composition scheme?
No, businesses under the composition scheme are not entitled to ITC

common itr filing mistakes

Filing ITR in India? Don’t Make These Common Mistakes!

Posted on: by: Aditya Narayanin: Direct Tax1 Comment

Common Mistakes to Avoid While Filing Income Tax Returns in India

Filing an Income Tax Return (ITR) is an important yearly task for every Indian taxpayer. In this digital age, most streamlined operations allow a taxpayer to file their taxes, but some common mistakes delay the process, cause penalties, or create legal problems. Here is a comprehensive list that covers the most common mistakes and how to avoid them, based on expert advice.

1.Choosing the Wrong ITR Form

Selecting the appropriate ITR form is essential. The Income Tax Department has different forms (from ITR-1 to ITR-7), depending on the income classes and taxpayers with whom they are associated. If you use an incorrect form, your return may be treated as defective and rejected, creating unnecessary problems from your end and delays in refunds. For instance, for persons salaried under ₹50 lakh, ITR-1 is to be used; if you have capital gains or own more than one house, you must file ITR-2 or above forms.

Tip: Always check the eligibility criteria for each ITR form before filing.

2.Missing or Incorrect Personal Information

Processing may be delayed, or refund may not be generated if basic details like PAN, Aadhaar, name, date of birth, bank account number, or contact information are erroneous. Check so that all personal information corresponds to that in your official documents and is entered correctly.

Tip: Double-check every detail before submitting your return.

3.Not Reporting All Sources of Income

Most taxpayers report only the main salary income and tend to overlook other sources such as:

  • Interest on savings, FDs, or regular deposits
  • Rent received
  • Income from freelance work or side businesses

All income, regardless of how small, is to be reported. Leaving out any source is tantamount to concealment and can result in penalties or attention from the tax department.

Tip: Review your bank statements, Form 26AS, and AIS to ensure nothing is missed.

4. Not Reconciling with Form 26AS and AIS

Form 26AS and Annual Information Statement (AIS)summarize all tax deducted at source (TDS), advance tax paid, and high-value transactions. Not cross-verifying your ITR data with these forms can result in mismatches, notice and refund delays.

Tip: Always reconcile your return with Form 26AS and AIS before submission.

5.Not Meeting the Deadline for Filing

Late fees, interest on overdue taxes, and the loss of some benefits, such as the ability to carry forward capital losses, can all arise from missing the ITR deadline. In extreme circumstances, it might even lead to legal action.

Tip: To prevent last-minute rush and mistakes, set reminders and file your return well in advance of the due date.

6.Failure to e-verify the ITR

Until you e-verify your ITR, it is not complete. Unverified returns are deemed invalid, and you might need to start over. E-verification must be finished within 30 days of filing and can be done through net banking, Aadhaar OTP, or other authorized means.

Tip : As soon as you file, finish the e-verification step.

7.Not Disclosing Every Bank Account

All bank account information, both active and dormant (apart from those closed during the year), must be disclosed. Failure to do so is against IT regulations and may result in sanctions.

Tip : Before beginning the filing process, make a list of all your bank accounts.

8. Choosing the Wrong Assessment Year

Penalties or double taxation may arise from choosing the incorrect assessment year. For instance, income from FY 2024–2025 should be reported for AY 2025–2026.

Tip : Before filing your return, confirm the assessment year.

9.Ignoring IT Department Alerts

React right away if the Income Tax Department sends you a notice. Ignoring communications may result in fines, legal action, or both.

Tip: Keep an eye out for updates on the income tax portal and in your registered email.

10.Neglecting Exemptions and Deductions

Many taxpayers either make mistakes in their claims or fail to claim eligible deductions under sections such as 80C, 80D, and 80TTA. As a result, you might have to pay more taxes than you need to.

Tip: Take advantage of all the deductions you are entitled to and keep all supporting documentation close at hand.

Summary Table: Common ITR Filing Mistakes

Mistake

Consequence

How to Avoid

Wrong ITR Form

Return rejection, delays

Check eligibility for each form

Incorrect personal info

Refund delays, processing issues

Double-check all entries

Not reporting all income

Penalties, scrutiny

Review all sources, Form 26AS/AIS

Not reconciling with Form 26AS/AIS

Notices, refund delays

Cross-verify before filing

Missing the deadline

Late fees, loss of benefits

File early

Not e-verifying ITR

Return treated as invalid

E-verify within 30 days

Not disclosing all bank accounts

Penalties

List all accounts

Wrong assessment year

Double taxation, penalties

Confirm assessment year

Ignoring IT notices

Legal action, penalties

Respond promptly

Missing deductions/exemptions

Higher tax liability

Claim all eligible deductions

By avoiding these typical errors, you can increase your refunds and guarantee a seamless, easy tax filing process. Keep abreast of the Income Tax Department’s most recent guidelines at all times, and seek advice from a tax professional in complex situations.

Zero-Based Budgeting

Zero-Based Budgeting: A New Way to Manage Your Finances

Posted on: by: Aditya Narayanin: Personal Finance1 Comment

Zero-Based Budgeting: A New Way to Manage Your Finances

Zero-based budgeting (ZBB) is quickly catching on among top financial influencers and financial hacks and it’s easy to see why. Unlike budgets you set where you just adjust last month’s budget, a ZBB isn’t based on another period. Instead, you have to explain every rupee you’re going to spend. This clarification helps you remove waste in your spending and makes sure your money is spent only where it is supposed to be productive. To put it all together, we’ll synthesise the best advice from the most reliable sources and up-and-coming articles, to explain how ZBB works, why it is growing in popularity, and how you can use ZBB to grab complete hold of your finances.

What Makes Zero-Based Budgeting Different?

Whereas traditional budgeting often budgets for progressive changes (add a few rupees here and take a few away there), zero-based budgeting goes to the other extreme and requires that every expense be justified from a zero base, with every penny accounted for and serving a purpose. This is the way you can change your life if you want to get full control of money.

” The simple notion behind a zero-based budget, sometimes called a zero-sum budget, is that every cent must have a purpose. “

Key Benefits (and Why They Matter)

The Important Features of ZBB:

  • Focused Cost Control: With ZBB, every dollar receives thinking; wasteful expenditure and legacy costs hardly find any opportunity to exist in a conventional budget.
  • Goal Alignment: Convert every rupee spent into current priorities and financial goals, not into old accumulation.
  • High Level of Accountability: Be it managing household finances or running a company, if you employ ZBB, it becomes easier to pinpoint who’s accountable for each spending decision and its outcome.
  • Agility and Flexibility: Starting from zero, you find it easier to fit a budget around changes in your life, new opportunities, or economic uncertainty.
  • Customizable and Forward Thinking: ZBB can be as simple or detailed as you want and is designed to promote future thinking over ingrained habits.

The Challenges (and How to Overcome Them)

No system is flawless, and the top stories concur on the key obstacles:

  • Time-Consuming: ZBB requires more effort initially—tracking, classifying, and justifying each expense is time-consuming.
  • Tough with Variable Income: If income varies, it is hard to budget each rupee, but taking last month’s income as a reference can be helpful.
  • Hard to Forecast Unforeseen Expenses: Surprises can ruin your plan, but setting aside a separate savings category for surprises can act as a buffer.
  • Capital Intensive for Organizations: For organizations, ZBB can be controlled by clever managers or give rise to short-termism if not properly managed.

How to Start Zero-Based Budgeting (and Stick With It)

Here’s a practical, step-by-step guide inspired by the best advice from NerdWallet, Indeed, and Oracle:

  • Know Your Income: Write down everything—salary, side hustles, investments .
  • Track Your Expenses: Go through past spending to identify trends and savings opportunities.
  • Categorize and Prioritize: Segment expenses into needs, wants, savings, debt, and emergencies.
  • Allocate Every Rupee: Ensure income minus expenditure equals zero—each rupee has a purpose.
  • Review and Revise Monthly: Life gets in the way, so does your budget. Adjust categories and priorities accordingly.

Also Read our insightful  article on the Top Investment options in India.

Zero-Based Budgeting vs. Traditional Budgeting

Feature

Zero-Based Budgeting

Traditional Budgeting

Starting Point

Every expense starts at zero

Adjusts previous year’s budget

Expense Justification

Required for all expenses

Only for new/changed expenses

Flexibility

High—adapts to change easily

Lower—may carry over old habits

Time Commitment

High upfront, ongoing review

Lower, but less scrutiny

Accountability

Strong focus on responsibility

Can be diffuse

Why Make the Switch?

Zero-based budgeting isn’t just another financial trend —it’s a proven way to take control, cut waste, and align your spending with what matters most. Whether you’re an individual aiming for financial freedom or a business leader seeking efficiency, ZBB delivers clarity and discipline that traditional budgets often lack.

Ready to give it a try? Start small, be consistent, and watch as your financial confidence grows. Zero-based budgeting is less of a method and more about a paradigm shift that puts you in the driver’s seat of your financial journey.

Disclaimer: Information contained in this article is for informational purposes only. Growthinfy and the author do not accept any liability for any financial decisions made on the basis of this information. Consult a certified financial planner before making any investment or savings choice.

The Emergence of AI Startups in India: Innovations and Key Players

The Emergence of AI Startups in India: Innovations and Key Players

Posted on: by: Aditya Narayanin: Startup UpdatesLeave a reply

 

The Emergence of AI Startups in India

India is emerging as the world AI hub with its growing startup ecosystem. These  AI Startups in India are disrupting conventional industries with intelligent solutions on the basis of machine-learning, deep-learning, NLP, and computer vision from healthcare and fintech to logistics and agritech industries. More government support, VC investment, and talent supply are pushing the AI startup ecosystem in India to new heights.
Why AI Startups Are Booming in India

Here are some of the main reasons why AI startups in India have picked up:

  • Abundant Tech Talent: India produces over a million engineering graduates every year, of which a good number of them have expertise in AI and data science.
  • Government Push: Plans like Digital India, Startup India, and NITI Aayog’s National AI Strategy are driving AI adoption.
  • Availability of Data on a Larger Scale: This large and heterogeneous Indian population leads to a vast expanse of structured and unstructured data-a goldmine waiting to be tapped for AI training models.
  • Low-Cost Innovation: Indian startups build AI solutions cheap; hence, they can compete globally.

Key Players in the Indian AI Startup Ecosystem

Here are some of the most talked-about opportunities and successes for AI startups in India in 2025:

1.Haptik

Backed by Reliance Jio, Haptik is the frontrunner in conversational AI. AI chatbot and voice assistant technologies are being used by large enterprises to service and engage their customers.

2.Arya.ai

Arya.ai builds infrastructure tools for deep learning to support complex decision-making, mainly working on autonomous AI systems in financial services.

3.Gnani.ai

Gnani is transforming voice recognition and speech-to-text technologies for Indic languages, establishing AI accessibility for the masses in BFSI, edtech, and customer support.

4.SigTuple

SigTuple uses AI for medical diagnostics with the automation of visual medical data analysis, thereby empowering pathologists to make faster and more accurate decisions.

5. Mad Street Den

A retail AI startup, Mad Street Den uses computer vision and AI to personalize shopping experiences for major fashion and e-commerce brands.

6 . Niramai

This Bangalore-based health tech startup utilizes AI-powered thermal imaging for the early detection of breast cancer, giving a noninvasive and radiation-free alternative.

Innovations That Are Reshaping the AI Landscape

The AI startups in India are not only contributing innovations in software — they reach across infrastructure, ethical AI, and domain-specific applications:

  • Edge AI: Various startups are developing deploying AI models on low-power edge devices for enhancing real-time responsiveness and privacy.
  • AI for Bharat: Businesses are developing AI tools that can function across India’s diverse languages and literacy levels, with an aim to target rural and semi-urban areas.
  • AI in Governance: Startups are collaboratively working with public institutions to implement AI in areas such as predictive policing, disaster management, and public health monitoring.
  • Generative AI: Motivated by ChatGPT and DALL·E, Indian startups are looking at generative AI to generate content, prototype designs, and automate creative work.

Challenges and the Road Ahead

Despite the momentum, AI startups in India face some key challenges:

  • Data Privacy Issues: Since AI depends on enormous data sets, ethical collection and privacy of data are a concern.
  • Regulatory Hesitation: Uncertainty surrounding regulations on AI use can slow innovation and investment.
  • Monetization: Most AI startups have difficulty scaling business-sustainable models in a maturing market.

With growing digital adoption, strong support ecosystems, and international collaborations, the future prospects appear promising.

Final Thoughts

The growth of AI startups in India is an indication of how technology is redefining the future. From overcoming domestic issues to crafting globally scalable solutions, such startups are spearheading a revolution in smart innovation. With India continuing to ascend the AI value chain, more unicorns, deeper penetration, and pathbreaking steps in the coming years can be expected.

GST Return Filing Process: A Complete Step-by-Step Guide

GST Return Filing Process: A Complete Step-by-Step Guide

Posted on: by: Aditya Narayanin: Indirect Tax2 Comments

GST Return Filing Process

GST Return filing is one major compliance requirement for businesses registered under the Goods and Services Tax (GST) regime in India. It involves submission of detailed sales, purchases, tax collected, and input tax credit (ITC) availed information within a predetermined time frame.


Whether you’re a startup, small business entity, or big business house, it is crucial to understand the procedure and schedules for GST Return filing to stay away from penalties and smooth functioning.

In this article, we will guide you through:

  • What is GST Return filing?
  • Types of GST returns
  • Step-by-step procedure to file GST returns online
  • Key GST Return filing dates you need to remember

What is GST Return Filing?

GST Return filing is the process of furnishing business-related transaction data to the government via the GST portal. These returns help the tax authorities assess your tax liability, monitor compliance, and facilitate the claiming of input tax credit.

Every registered taxpayer must file GST returns periodically—monthly, quarterly, or annually—based on their type of registration and turnover.

Types of GST Returns

Here is a list of the most frequently filed GST returns by taxpayers:

Return Form

Applicable To

Frequency

Key Details

GSTR-1

Regular taxpayers

Monthly/Quarterly

Details of outward supplies (sales)

GSTR-3B

Regular taxpayers

Monthly/Quarterly

Summary return: outward supplies, ITC, and tax liability

GSTR-4

Composition scheme taxpayers

Annually

Summary of sales and tax paid

GSTR-5

Non-resident taxable persons

Monthly

Outward and inward supplies, tax liability

GSTR-6

Input Service Distributors

Monthly

ITC received and distributed

GSTR-7

TDS deductors

Monthly

TDS details

GSTR-8

E-commerce operators (TCS)

Monthly

TCS collected and supplies made

GSTR-9

Regular taxpayers

Annually

Annual summary of transactions

GSTR-9C

Taxpayers requiring audit

Annually

Reconciliation between GSTR-9 and audited financials

GSTR-10

Cancelled registrations

One-time

Final return post cancellation

GSTR-11

UIN holders (e.g., embassies)

Monthly

Inward supplies and refund claim

Important GST Return Filing Dates (2025-26)

It is essential to submit GST returns within time to evade interest, late fees, and notices. Below are the dates of GST Return filing you should keep in mind:

Return Type

Due Date

GSTR-1 (Monthly)

11th of next month

GSTR-1 (Quarterly – QRMP)

13th of month after the quarter

GSTR-3B (Monthly)

20th of next month

GSTR-3B (Quarterly – QRMP)

22nd/24th of month after the quarter (based on state)

GSTR-4 (Annual for Composition)

30th April of next financial year

GSTR-9 & 9C (Annual Return & Audit)

31st December of next financial year

GSTR-5/5A/6/7/8

10th to 20th of next month depending on form

Pro Tip: Use a reminder tool or compliance calendar to never miss a deadline.

Step-by-Step GST Return Filing Process

Do the following to file your GST return properly through the official website www.gst.gov.in:

Step 1: Login to the GST Portal

Go to gst.gov.in and log in using your GSTIN, username, and password.

Step 2: Access Returns Dashboard

Go to: Services > Returns > Returns Dashboard
Choose the correct Financial Year and Return Filing Period.

Step 3: Choose the Appropriate Return Form

Click on the return you wish to file—e.g., GSTR-1, GSTR-3B—and choose “Prepare Online”.

Step 4: Enter Transaction Details

Enter data manually or upload relevant invoice information. Check the amounts, save the form, and click on Submit.

Step 5: Pay Tax Liability

Click on Payment of Tax, verify your cash and credit balance, and use the “Offset Liability” option to pay the net tax amount.

Step 6: File the Return

After payment, check the declaration checkbox, select the authorised signatory, and file the return through DSC or EVC.

After filing, a confirmation with an Acknowledgement Reference Number (ARN) will be provided.

Tips for Accurate GST Return Filing

  • Keep proper records of invoices and credit notes.
  • Reconcile on a monthly basis with GSTR-2A/2B to make accurate ITC claims.
  • Don’t wait until the last minute to file to avoid system overload or mistakes.
  • Use accounting software or GST return filing tools for automation.

Conclusion

Knowing the GST Return filing process and following the right GST Return filing dates keeps you compliant and away from unwanted penalties. Although the process itself might look daunting at first, practice every now and then with the proper tools or professional assistance can make it easy sailing.

Need help with submitting your GST returns or being compliant? Talk to Growthinfy – Your go-to partner for tax and startup solutions.

How to File Income Tax Returns Online: A Step-by-Step Guide

How to File Income Tax Returns Online?

Posted on: by: Aditya Narayanin: Direct TaxLeave a reply

How to File Income Tax Returns Online?

Filing your income tax return (ITR) is a legal requirement and a key aspect of sound financial planning. Fortunately, you do not have to wait in queues or complete long forms anymore. You can also file income tax returns online from your home.

In this guide, we will go through filing income tax returns online, required documents, due dates, and FAQs to make your process smooth and seamless.

Why File Income Tax Return Online?

Filing online beneficial because its :

  • Quick processing and refunds
  • Accurate calculations with pre-filled data
  • Easy recordkeeping and access
  • Mandatory for income above the threshold limit

ITR filling applicability:

ITR filling applicability table 

Step-by-Step Guide: How to File Income Tax Returns Online

Step 1: Register or Login on the Income Tax Portal

  • Visit:https://www.incometax.gov.in
  • If you’re new, register using your PAN. If already registered, just log in.

Step 2: Choose the Correct ITR Form

There are different ITR forms like ITR-1, ITR-2, etc. based on your income source:

  • ITR-1 (Sahaj): For salaried individuals with income up to ₹50 lakh
  • ITR-2: For those with capital gains or foreign income
  • ITR-3/4: For business or professional income

Use the portal’s help section or consult a tax advisor if unsure.

Step 3: Select the Filing Mode

You can file:

  • Online (recommended): Pre-filled data is available, easier for salaried individuals.
  • Offline: Utility software can be downloaded and the form can be filled manually.

Step 4: Enter Required Details

  • Verify personal info
  • Enter income details (salary, house property, capital gains, other sources)
  • Claim deductions under 80C, 80D, etc.
  • Review taxes paid (TDS, advance tax)

Step 5: Validate and Submit

  • After completing the form, validate all details.
  • Click Submit.
  • If taxes are due, pay via the portal before submission.

Step 6: E-Verify Your Return

Post submission, verify it electronically:

  • Using Aadhaar OTP
  • Through Net Banking
  • Using EVC via bank account/Demat
  • E-verification is mandatory to complete the process.

Important Documents Required

Keep these handy:

  • PAN, Aadhaar card
  • Form 16 (for salaried)
  • Bank account details
  • Interest certificates (FD, savings)
  • Investment proofs (LIC, ELSS, PPF)
  • Home loan or rent receipts (if applicable)

Due Dates for Filing Income Tax Return

CategoryDue Date
Individual (Non-audit cases)31st July 2025
Businesses requiring audit31st October 2025
Revised/Belated Return31st December 2025

Note: File before the due date to avoid penalties and interest.

FAQs

1. Do I have to file ITR if my income is below the exemption threshold?

No, but it is recommended for visa, loan sanctions, and refunds.

2. Can I make changes to my return after submitting it?
Yes. You may make changes to it online before 31st December of the year of assessment.

3. What happens if I fail to meet the due date for filing ITR?
You can submit a belated return with late charges.

4. How do I check my refund status?
Log in to the portal and look under “View Returns/Forms” > “Refund Status.”

5. Is Aadhaar linking required for e-filing?
Yes. Aadhaar linking with PAN is required prior to filing.

Growthinfy’s Tips

  • Always recheck your income and deductions.
  • Use a secure internet connection when filing income tax returns online.
  • Take help of a tax professional if you have more than one source of income.

Following this guide, you can simply know how to file income tax returns online without any confusion. Keep yourself updated with due dates and keep your documents in place to make your filing smooth and timely.

Emergency Fund: Why You Need It and How to Create It

Emergency Fund: Why You Need It and How to Create It

Posted on: by: Aditya Narayanin: Personal Finance3 Comments

Emergency Fund: Why You Need It and How to Create It

What is an Emergency Fund?

An emergency fund is money that you have set aside for unexpected costs. It is a type of financial buffer. You may use it to cover medical expenses, loss of employment, or emergency repairs.

Why Is an Emergency Fund Essential in India?

In India, most individuals encounter unforeseen expenses. Medical bills, job insecurity, and family crises are usual. Without savings, these incidents can lead to stress and debt.

Let’s understand why an emergency fund is essential:

  • Increasing medical bills: Hospital bills are rising every year.
  • Job insecurity: Layoffs and delayed salaries are on the rise.
  • Natural disasters: Floods and other calamities can destroy homes and possessions.
  • Family emergencies: You might need to assist parents or family members during crises.

How Much Should You Save?

A decent emergency fund should be equal to 3 to 6 months of expenses. If you are a self-employed person, try for a minimum of 6 months. First, determine your monthly expenses. Include rent, food, bills, and EMIs.

Here’s an example:

Monthly expenses = ₹30,000
Emergency fund goal (6 months) = ₹1,80,000

Don’t worry if you have to start small. The idea is to be consistent.

Where Should You Keep the Emergency Fund?

Keep your emergency fund liquid and secure. Following are good options in India:

  1. Savings Account: Low risk and easy to withdraw.
  2. Fixed Deposits (FDs): Better returns than savings account.
  3. Liquid Mutual Funds: For slightly better returns with instant access.

Avoid investing emergency funds in stocks or long-term schemes.

How to Build Your Emergency Fund Step-by-Step

Step 1: Set a goal

Determine how much you require. Divide it into monthly savings goals.

Step 2: Open a different account

Do not commingle this money with your regular account. Open a separate bank account or FD.

Step 3: Automate savings

Utilize auto-debit to move a fixed amount regularly. It creates a habit.

Step 4: Reduce unnecessary expenses

Stay away from impulse purchases. Small reductions in shopping or dining out make you save quicker.

Step 5: Utilize additional income

Bonuses, tax rebates, or freelance income can increase your fund.

Tips to Keep Your Emergency Fund

  • Don’t touch it unless you must. This is for emergencies only.
  • Check on it annually. Adjust your fund level if costs increase.
  • Replenish after depletion. If you take out, resume savings.

Common Mistakes To Avoid

  • Investing it in risky investments such as stocks or cryptocurrency.
    Applying it towards budgeted expenses such as vacations or shopping.
  • Not keeping it current as life evolves (marriage, children, etc.).

Final Thoughts

An emergency fund provides peace of mind. In today’s unpredictable world, it insulates you from unexpected shocks. Begin today—even ₹500 a month will make a difference. Create your safety net and remain financially secure.

Disclaimer: Information contained in this article is for informational purposes only. Growthinfy and the author do not accept any liability for any financial decisions made on the basis of this information. Consult a certified financial planner before making any investment or savings choice.

Evolution of the Indian Startup Ecosystem Over the Last Decade

Evolution of the Indian Startup Ecosystem Over the Last Decade

Posted on: by: Aditya Narayanin: Startup UpdatesLeave a reply

Evolution of the Indian Startup Ecosystem Over the Last Decade

In the last decade, the Indian startup ecosystem went through a radical transformation. It has developed from an unfledged environment into the third-largest startup hub in the world, after the United States and China. Technological progress somewhere, favorable government policies, capital emergence, and young energetic workforce somewhere else-the ecosystem has diversified into sectors, geography, and with that evolution, it has generated millions of jobs while spurring innovation globally. This article traces the vital drivers, milestones, and roadblocks faced across this vibrant journey from 2015 to 2025.

The Foundation: Early 2010s and the Rise of E-Commerce

During the early 2010s, India’s startup ecosystem was still in its nascent stages, with a few technology-oriented businesses, mostly in IT services and outsourcing. Those were the years that saw the emergence of e-commerce giants such as Flipkart (founded in 2007) and Snapdeal, which rode the spurt in internet penetration and a rising middle class with spendable income. These companies set the foundation for consumer internet companies, and they attracted enormous venture capital (VC) from international investors, including Chinese and American companies. The firm has raised capital from international investors, mainly Chinese and American companies. Over 600 startups have raised over $2 billion in funding by 2015, large deals in the e-commerce space being Jabong and Pepperfry.
The liberalization of India’s economy in the early 1990s, together with the establishment of NASSCOM in 1988, prepared the ground for such growth. The “10,000 Startups” initiative by NASSCOM in 2013 further bolstered the ecosystem with incubation and mentorship. The entry of players such as Amazon, on the other hand, in 2013 spurred competition and innovation in consumer technology and logistics.

The Game-Changer: Startup India Initiative (2016)

January 2016 marked perhaps the most pivotal moment in the history of entrepreneur-focused schemes in India when the Indian government launched the Startup India initiative. The campaign targeted innovation enhancement and making entrepreneurship an easy path by way of tax sops, ease of compliances, and the Fund of Funds for Startups (FFS) with an initial corpus of ₹10,000 crore to catalyse private investment. Further, creating an incubation base was envisioned via the Startup India Hub and the Atal Innovation Mission.

The effect was instant and deep. From around 500 startups in 2016, the ecosystem expanded to more than 1.59 lakh identified startups by January 2025, according to the Department for Promotion of Industry and Internal Trade (DPIIT). The program democratized entrepreneurship, making it a sustainable career option for young Indians, especially STEM graduates, who form a large chunk of the nation’s under-35 population.

Funding Boom and the Unicorn Surge

With regard to investment, the decade witnessed heavy capital inflows. Startup India raised more than $147 billion between 2014 and 2024. Amidst international investor sentiment into the burgeoning digital economy of India, the funding environment peaked in the years 2020 and 2021. In view of global economic uncertainties and the sudden collapse of Silicon Valley Bank, a funding winter prevailed during 2022-2023. However, with this downturn came the recovery of the ecosystem in 2024, where it raised $11 billion against $9.4 billion in 2023. One of the important deals was a $1 billion raise by Zepto, emphasizing the quality of investments more than the quantity of deals.

The emergence of unicorns—companies worth more than $1 billion—has been the signature of this era. India got its first unicorn in 2011, and as of January 2024, India had 113 unicorns with a total valuation of $350 billion. In 2025, the figure increased to 118, with the likes of Zomato ($30 billion market cap) and Swiggy dominating the list. The rise of “soonicorns” (potential unicorns) further justifies the depth of the ecosystem, as there were 355 promising startups in 2023.

Sectoral Diversification and Technological Innovation

While fintech and e-commerce led initial growth, the ecosystem became highly diversified in the decade. Areas such as health-tech, edtech, deep tech, space tech, and electric vehicles (EVs) became prominent. Deep tech startups alone garnered $6.73 billion in funding, of which $2.1 billion was in 2022, showing India’s emphasis on R&D-led innovation. The EV space received $4.8 billion, and space tech became a global player after privatization attempts.

The adoption of artificial intelligence (AI) and generative AI (GenAI) has been especially revolutionary. As of May 2023, more than 60 GenAI startups were providing solutions across sectors, fueled by the shocks of the COVID-19 pandemic. Initiatives such as the India AI Mission, where $267 million was reserved for AI startups, also helped boost this trend. Fintech also saw growth, with breakthroughs such as the United Payments Interface (UPI) and firms such as Paytm, Razorpay, and PhonePe transforming digital payments.

Geographical Expansion: Beyond Metro Hubs

While the startup ecosystem was traditionally based out of Bengaluru, Mumbai, and Delhi-NCR, applicants are now finding its way to Tier-II and Tier-III cities such as Jaipur, Ahmedabad, Kochi, and Indore. Bengaluru goes on to hold the startup capital status, having managed to raise $70.4 billion during the last decade. In a similar vein, Jaipur, far away from metros, has grown into a fintech hive of some $214 million in 2023. Several initiatives by the government and again the change in digital infrastructure have taken this further, enabling startups to tap into local talent and look at their local markets. Other states such as Bihar and Haryana also stand promising because of their proximity to urban pockets and resource richness.

Job Creation and Economic Impact

Startups have been a major contributor to employment, generating more than 16.6 lakh direct jobs as of late 2024, of which the IT services industry added 2.04 lakh jobs. Startups were estimated to have created about 10 lakh jobs by the year 2023, relieving brain drain fears and refocusing talent on various sectors. The economic impact of the ecosystem is reflected in its contribution to India’s GDP, with estimates pointing towards a 12–15% year-on-year growth in the years to come.

The emergence of women entrepreneurs has been a significant trend, with 73,151 startups having at least one woman director as of October 2024. Schemes such as the Stand-Up India scheme, which provided loans to Scheduled Caste, Scheduled Tribe, and women entrepreneurs, have promoted inclusivity, with more than 80% of loans under the scheme going to women.

Challenges: Funding Gaps, Exits, and Governance

Although it has expanded, the ecosystem is not without challenges. Early-stage ventures frequently find it challenging to raise capital, with most depending on government programs and angel investors. The 2022–2023 funding winter saw more than 37,260 employees laid off from 130 startups, pointing to governance weaknesses and business models that are unsustainable.

Exits and liquidity continue to be key concerns. In contrast to Silicon Valley, where exits are fueled by acquisitions by technology giants, Indian firms have been tardy in acquiring startups, restricting liquidity for investors. Regulatory complexities also present challenges, with unclear policies stifling innovation in certain industries. Overcoming these issues calls for greater interlinkages between mature and emerging startup clusters, as well as profitability-oriented policies rather than explosive valuation growth.

The Road Ahead: A Global Innovation Powerhouse

India’s startup ecosystem is set to grow further, with estimates of having more than 250 unicorns by 2025 and over 1 billion internet users. Domestic venture capital expansion, in addition to government emphasis on programs such as Digital India, Make in India, and the Drone Shakti Program, will further solidify the ecosystem. Increased presence of family offices and Indian institutional investors is a sign of a transition to indigenous-style funding models, lowering reliance on foreign capital.

With Indian startups setting their sights on international markets more and more, they are leaving the era of “me-too” models behind to develop differentiated, IP-based solutions. The resilience of the ecosystem, as proven in the funding winter, and the capacity to innovate in every sector make India a global leader. By resolving issues like funding shortages and regulatory issues, India’s startups can propel the country towards its $10 trillion economy target, establishing it as an innovation hub.

Conclusion

The last decade has been a revolutionary ride for India’s startup ecosystem, with exponential scaling, sector diversification, and international acclaim. From the e-commerce revolution of the early 2010s to the AI-led innovations of 2025, the ecosystem has matured into a force to be reckoned with for economic and social transformation. Though there are challenges ahead, cooperative efforts by entrepreneurs, investors, and policymakers guarantee that India’s startup phenomenon is only just starting, with the ability to transform the innovation landscape globally.

 

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