U/S 87A

Yes you are fully correct........

I think it will be apply on only Resident Individual.

The rebate for FY 2016-17 shall be available if you satisfy both these conditions:

1) You are a RESIDENT INDIVIDUAL.
2) Your Total Income Less Deductions (under Section 80) is equal to or less than Rs 5,00,000

If both the above conditions are satisfied, rebate of Rs 5,000 will be available under Section 87A. The rebate is limited to Rs 5,000. Which means if the total tax payable is lower than Rs 5,000, such lower amount of tax will be the rebate under section 87A.

This rebate is applied on total tax before adding Education Cess(3%).

This rebate is also available to Senior Citizens who are 60 years old but less than 80 years old.

Thanks!

@ VaibhavJ