Tax rebate u/s 87a

No assese cannot claim rebate as the income after deduction is taken for claiming Rebate

U/s 87A - What does total income means?

Is it gross taxable Income less any tax deductions u/s 80C to 80U?

Please Guide me.

Yes, rebate u/s 87A is available if the net income (gross total income - deduction u/s 80c to 80u) of resident individual is <=Rs.5 lacs.

I made a mistake he can claim rebate if the scenario is 490000. If not he cant. really soory. I thought the other way

As per Section 87A:

Tax rebate in case of individual resident in India, whose total  income  does  not  exceed Rs.5,00,000; quantum of rebate shall be an amount equal to 100% of such income ­tax or Rs.2,000, whichever is less.

And, here Total Income = Gross Total Income - Deductions under Chapter VI-A

So, in your case, Rebate u/s 87A is available to Individual (550000 - 60000 = 490000, it's less than Rs.5,00,000)

Crux of Section 87A:

1. Total Income <= Rs.5,00,000

2. Rebate (Minimum of following) :-

a) 100% of Income Tax; or

b) Rs.2,000

Total Income = Gross Total Income - Deductions under Chapter VI-A

Alternatively, use following link to calculate your tax liability for AY 2016-17. You just need to input your data and it will calculate tax following all provisions automatically.

/share_files/new-version-of-income-tax-calculator-for-ay-2016-17-69445.asp

Thanks & Regards

Rohit Goyal