Section 87A / Section 156 Rebate Declaration
Record your eligibility for the rebate that brings tax to nil for resident individuals with income up to the limit.
Law version: FY 2025-26 (Income-tax Act, 1961); Tax Year 2026-27 onwards (Income-tax Act, 2025). Checked on 26 Sep 2026.
What it is
A resident individual whose total income is within the limit gets a rebate of tax: up to ₹60,000 under the new tax regime where total income is up to ₹12 lakh (with marginal relief just above), or up to ₹12,500 under the old regime where total income is up to ₹5 lakh. These limits apply from FY 2025-26 under Section 87A of the Income-tax Act, 1961, and continue for Tax Year 2026-27 under Section 156 of the Income-tax Act, 2025. The declaration records the facts for an employer or payer working out TDS.
When it is used
- Employees whose income is within the rebate limit.
- Pensioners and others giving a nil-tax declaration to a payer.
- Checking eligibility before choosing a tax regime.
What the template covers
- Name, PAN and address
- Year and residential status
- Tax regime chosen
- Total income
- Income tax before rebate
- Rebate and net tax
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Declaration
Date
Assessee
Assessee Name; PAN; Address; Financial Year / Tax Year; Residential Status
Tax Regime
Tax Regime Chosen
Income
Total Income (₹); Income Tax Before Rebate (₹)
Stamp duty, registration and filing
The rebate is available only to resident individuals. Income taxed at special rates, such as some capital gains, may not be eligible for the rebate under the new regime; check the current rules. Under the new regime, salaried taxpayers also get a standard deduction, so salary somewhat above ₹12 lakh can still be tax-free. Check the limits on incometax.gov.in.
Rebate limits from FY 2025-26 (Finance Act 2025), unchanged for Tax Year 2026-27: new regime ₹60,000 where total income is up to ₹12,00,000, with marginal relief just above ₹12 lakh; old regime ₹12,500 up to ₹5,00,000. Earlier years had lower limits (new regime ₹25,000 up to ₹7 lakh), so they are not offered here.
Generate the Section 87A / Section 156 Rebate Declaration
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows (e.g. TDS returns, ITR)? Contact SKAG and Associates
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Frequently asked questions
Is income up to ₹12 lakh tax-free?
Under the new regime, for a resident individual whose total income is up to ₹12 lakh, the rebate makes the tax nil (special-rate income aside). Salaried people also get the standard deduction.
Can NRIs claim the 87A rebate?
No. It is only for resident individuals.
What is marginal relief?
Where income is just above ₹12 lakh, tax is limited to the amount by which income exceeds ₹12 lakh.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.