A day after the government announced a slew of steps to offer relief from angel tax and improve investment flows, start-ups rushed to get themselves registered with the department for promotion of industry and internal trade (DPIIT) to take advantage of the incentives. As many as 85 start-ups got themselves registered on Wednesday, much higher than the daily average of less than 10 in recent months. The total number of start-ups registered with DPIIT jumped to 16,201 at the end of Wednesday from 16,116 on Tuesday when the industry ministry announced the succour, showed the official data. Start-ups are required to register themselves with DPIIT to be eligible for the relief. Prime Minister Narendra Modi had launched Start-up India on January 16, 2016 and registration with DPIIT picked up pace in 2017. Sachin Taparia, founder and chairman at LocalCircles, said: \u201cIf all goes well, the number of DPIIT-registered start-ups will zoom to 25,000-26,000 within a year from 16,202 now due to the changes announced.\u201d The government on Tuesday hiked the limit of funding by unlisted firms or individuals in a start-up that would be exempted from the angel tax to Rs 25 crore from the current Rs 10 crore. Investments by large listed companies having a net worth above Rs 100 crore or annual turnover of Rs 250 crore will be exempted from any such limit or tax. Firms that are in operation for up to 10 years will now be recognised as start-ups, instead of seven years earlier, if they meet other eligibility criteria on innovation and turnover. The annual turnover limit for the start-up tag has also been raised four times to Rs 100 crore to benefit more companies. To be eligible for the relief, start-ups have to register with DPIIT and submit an undertaking, saying they are not investing in specified segments (that are usually suspected to be used to funnel black money), unless these investments are made \u201cin the ordinary course of business\u201d. For instance, these start-ups can\u2019t invest in realty; loans and advances; shares and securities; a motor vehicle, aircraft, yacht or any other mode of transport, the actual cost of which exceeds Rs 10 lakh and jewellery etc. Industry sources said the government could start the process of obtaining the undertaking-along with some other relevant documents like PAN and audited results\u2014from start-ups from March 1 to suggest that they will not indulge in funnelling black money. While the start-ups that are already registered with DPIIT will also have to submit these details, those that haven\u2019t yet got registered are now scrambling to get the recognition. The angel tax is typically an impost on the extra capital raised by an unlisted firm through the issue of shares over and above their fair market value. According to Section 56 of the I-T Act, the excess capital so raised is treated as income and taxed accordingly. While the section was aimed at curbing money laundering, it had troubled start-ups and their investors.