Tax deduction for IFSC units grants full exemption for chosen consecutive years within a specified period; banks receive phased deductions. Amendment to section 80LA permits scheduled banks and foreign banks with Offshore Banking Units in Special Economic Zones to claim a phased deduction from specified income beginning in the assessment year when required permission or registration is obtained, with an initial period of full deduction followed by a reduced-rate period. It also creates a separate entitlement for Units of an International Financial Services Centre to elect a full deduction for a block of consecutive assessment years within a prescribed multi year window, and updates subsection cross references accordingly.