What is rebate under section 87A? Section 87A rebate provides income tax rebate to individuals those who earn income below the specified limit. It is being provided to reduce the tax burden of lower income bracket. Our Finance Minister, Arun Jaitley has provided a maximum rebate of Rs. 2500 under Section 87A for the Financial Year 2017-18. Who can claim rebate under 87A? If you are a resident in India and your total income does not exceed Rs. 3,50,000 then you are eligible to claim the rebate under section 87A. For the FY 2017-18, it is limited to Rs. 2500. That means, if the total tax payable is lower than Rs 2,500, 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. If the tax liability exceeds Rs. 2,500, rebate will be available to the extent of Rs. 2,500 only and no...