Karnataka IT Policy 2020 - 2025 - Lease/Rental Reimbursement
The incentive is administered by the Karnataka Innovation & Technology Society under the Department of Electronics, IT, Biotechnology & Science & Technology, Government of Karnataka, as part of the Karnataka IT Policy 2020-2025. The purpose of the incentive is to ease the infrastructure cost for IT/ITeS units establishing operations in Karnataka by reimbursing part of the lease or rental cost for office/spaces (or seats in co-working / plug-and-play infrastructure) outside Zone 3. For your business, this means if you lease or rent office space in eligible zones you may get reimbursement which reduces your occupancy cost, improving your cash-flow and viability.
Key Features
- Applicable only to IT/ITeS entities establishing operations outside Zone 3: The incentive is restricted to entities set up in Zones 1 and 2 so as to encourage de-centralised growth and development in Karnataka.
- Reimbursement for space taken on lease or rent for one year during the policy period: The entity must have taken the space on lease or rent for a continuous period of one year within the policy period to qualify.
- Two modes of reimbursement:
- For a conventional leased/rented office space: at a rate of INR 10 per sq.ft. for one year, up to maximum of INR 3 lakh.
- For co-working space / plug-and-play infrastructure seats: at a rate of INR 1,000 per seat for one year, up to maximum of INR 6 lakh.
- Maximum caps apply: These caps are the maximum reimbursement you can claim under this incentive. Actual reimbursement will be on actuals but up to the limit.
- Available only once during the policy period per applicant: The applicant may avail this lease/rental reimbursement incentive only once during the entire policy period .
Financial Assistance
Eligibility Criteria
Who Can Apply:
- IT/ITeS entities registered under Karnataka IT Policy 2020-25 with KITS. Department of Electronics,
- The entity must set up operations outside Zone 3.
- The entity must have taken space on lease or rent for one continuous year during the policy period.
Who Cannot Apply:
- Entities locating in Zone 3 are not eligible for this lease/rental reimbursement incentive.
- Entities that do not take space on lease/rent are not eligible under this specific incentive.
- Claim must be one-time per entity during policy period; repeated claims not allowed.
Documents Required
- Valid lease/rental agreement.
- Invoices/receipts of lease/rental payments made by the entity for the claim period.
- Details of the area leased/rented or number of seats occupied in case of co-working space.
- Registration certificate of the entity under Karnataka IT Policy-2025 eligibility or DEITBT approval.
- Bank account details for reimbursement payment.
Application Process for the Scheme
Option 1: Apply with Bullit
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Option 2: Via Department of Electronics, IT, BT & S&T Portal
- Register your entity and obtain eligibility under the Karnataka IT Policy 2020-25.
- Ensure you have valid lease/rental agreement, details of area or seats occupied, payment receipts for the period of claim.
- Submit application for Lease/Rental Reimbursement via the prescribed form on the policy’s portal, selecting the “Per sq-ft” or “Per seat” option.
- Upon verification and approval by the nodal agency, reimbursement is credited to the applicant’s bank account as per policy terms.
Option 3: Via Co-working / Plug-and-Play Space Route
- If your entity is operating in a co-working space or plug-and-play infrastructure, ensure the rental agreement clearly mentions number of seats occupied and agreed per-seat rate.
- Follow the same application process via DEITBT, selecting “Per seat” reimbursement and submitting required seat-based documentation.