Limit of exemption u/s 87A

Rebate of up to Rs. 5,000 for resident individuals having total income of up to Rs. 5,00,000 as per Sec-87A of Income Tax Act, 1961 for A.Y. 2017-18 i.e. F.Y. 2016-17

The rebate shall be equal to the amount of income tax payable on the total income for assessment year 2017-18 or an amount of Rs. 5,000, whichever is less

Key Point :-

Individual resident of India,

Whose Total Income is up to Rs. 5,00,000

Shall be allowed a rebate, From Income Tax,

100% of Income Tax or Rs.5,000, Whichever is less 

By the way it is not exemption but it is a rebate.

For F.Y.2016-17 the rebate under Section 87A of Income Tax Act will be Total amount of tax payable or Rs.5000/- whichever is less.This provision applies only to those persons whose gross total income does not exceed Rs.5,00,000/-.

Originally posted by : Ashish Rai
	i have downloaded pdf finance act 2016 it iswritten in thtIn section 87A of the Income-tax Act, for the words “two thousand rupees”, the words “five thousand rupees” shall be substituted with effect from the 1st day of April, 2017.

This is for F.Y.2017-18.

GO THROUGH V. G. MEHTA'S™ INCOME-TAX READY RECKONER AY 2017-18 

First of all it is rebate not exemption (Rebate means that reduces tax amount)

for a/y 2017-18 it is Rs.5000/-

Earlier it was rs. 2000/-

Calculation

Total income xxx

less: deduction under chapter vi a(xx)

Net taxable income xx

Tax on above (condition net taxable income must be upto Rs.500000/-)

than rebate will be lesser of actual tax or Rs.5000/-

thanks