Tax deduction for eligible industrial undertakings reduces taxable profits where statutory formation, operation and approval conditions are met. Section 80IB allows a deduction from profits of specified newly formed industrial or related businesses for defined consecutive assessment years, subject to conditions on formation, prior use of machinery, manufacturing or employment thresholds, geographic or sectoral classifications, prescribed approvals, and temporal commencement windows; enhanced initial relief applies to backward regions and certain notified sectors, while audit and transfer provisions govern compliance and continuity of claims.