Section 87A is a statutory grant that allows for a tax rebate under the Income Tax Act of 1961. The clause introduced by the Finance Act of 2013 provides for tax exemptions for persons earning below a certain limit. Section 87 A provides that anyone living in India and whose income does not exceed Rs 5,00,000 is entitled to claim a rebate. The full tax rebate is therefore available to people with less than Rs 5 Lac of taxable income. This discount only applies to individuals and not to companies, etc. And we are calculating before adding the health and education expenditure of 4%.