Who can avail the exemption under section 87 a

 Rebate under Section 87A: The rebate is available to a resident individual if his total income does not exceed Rs. 5,00,000.

The rebate is adjusted, while calculating tax liability. Generally, e-filling software itself substracts the rebate amount from the total tax payable (if applicable).

If I am a salaried person, the total income here refers to the GROSS INCOME WITHOUT PERK or GROSS INCOME or total gross income. Please clarify.Thank you in advance.  

Its the gross taxable income minus all the deductions availed. or NET TAXABLE INCOME. After reducing the taxable income from all the deductions under chapter VI A, if its equal to or less than 5 lakhs, then the resident individual assessee can get rebate in tax maximum upto Rs. 5000/-

ThankYou sir.

TAXABLE INCOME UNDER:- INCOME FROM ALL SOURIES ( –) ALL EXEMPT INCOME (–)ALL DEDUCTION = Taxable income

 REBATE U/S 87A EQUAL TO 10% OF TAXBLE INCOME BUT MAX. REBATE IS RS 5000

AGE LIMIT FOR AVAIL: YOU AGE MUST BE UNDER 60 YEAR  
 

Where your income for computation of tax (I.e after deductions) is less that rs.500000 you are eligible for rebate under section 87a of rs.5000 or tax payable whichever Is lesser. 

Say if the tax so computed before rebate is less than 5000rs - such tax payable so computed will be rebate. 

This is applicable from the assessment year 2017-18 onwards. 

For any AY prior to that - above is to be read substituting rs.2000 in place of rs.5000