Question: is 5 lakh income tax free?
Answer: As per current income tax laws, a person is eligible for tax rebate up to Rs 12,500 under section 87A, if the net taxable income does not exceed Rs 5 lakh. ... Individuals, whose income just exceeds Rs 5 lakh, would be liable to pay more tax than the amount by which their income exceeds Rs 5 lakh.