Section 155
Section 155: the general rule for income-tax rebates
Section 155 is a short framework provision that opens Chapter IX (Rebates and Reliefs). It does not itself grant any rebate amount - it sets the mechanics for how rebates under section 156 are applied: they come off the income-tax computed before other Chapter IX deductions, and they can never exceed the income-tax otherwise payable on the assessee's total income for the year.
How the rebate is applied
In computing income-tax on the total income of an assessee chargeable for any tax year, a deduction is allowed from income-tax (as computed before allowing the deductions under this Part), subject to section 156, of the deductions specified in that section.
The rebate cannot exceed the tax payable
The deduction under section 156 cannot, in any case, exceed the income-tax (as computed before allowing the deductions under this Part) on the total income of the assessee chargeable for that tax year.
Frequently asked questions
Does Section 155 itself give a rebate amount?
No - Section 155 only sets the general rule for how rebates are computed and applied. The actual rebate amounts are specified in section 156.
Can the rebate exceed the income-tax payable?
No - Section 155(2) caps the deduction under section 156 at the amount of income-tax (before this Part's deductions) otherwise payable on the assessee's total income for the year.
Related sections
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Talk to our tax team about income-tax rebatesLast updated 9 September 2026