Income-tax rebate for resident individuals limits tax liability for those below the income threshold through a capped rebate. A new provision, section 87A, grants an individual resident with total income not exceeding five hundred thousand rupees a deduction from income-tax (computed before Chapter VIII deductions) equal to one hundred per cent of such tax or two thousand rupees, whichever is less, thereby creating a capped rebate for qualifying low-income resident individuals.