What is rebate under section 87A and who can claim it?

An individual who is resident in India and whose total income does not exceed Rs. 3,50,000 is entitled to claim rebate under section 87A. Rebate under section 87A is available in the form of the deduction from the tax liability. Rebate under section 87A will be lower of 100% of income-tax liability or Rs. 2,500. In other words, if the tax liability exceeds Rs. 2,500, the rebate will be available to the extent of Rs. 2,500 only and no rebate will be available if the total income (i.e. taxable income) exceeds Rs. 3,50,000.

Source: Income Tax Website

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