Section 87A is a legal provision which allows for tax rebate under the Income Tax Act of 1961. The section which was inserted through the Finance Act of 2013 provides tax relief for individuals earning below a specified limit. Section 87 A provides that anyone who is residing in India and whose income does not exceed Rs 3,50,000 is eligible to claim a rebate. This rebate is applicable only to individuals and not companies, etc and is calculated before adding the health and educational cess of 4 %.