As per Section 87A:
Tax rebate in case of individual resident in India, whose total income does not exceed Rs.5,00,000; quantum of rebate shall be an amount equal to 100% of such income tax or Rs.2,000, whichever is less.
And, here Total Income = Gross Total Income - Deductions under Chapter VI-A
So, in your case, Rebate u/s 87A is available to Individual (550000 - 60000 = 490000, it's less than Rs.5,00,000)
Crux of Section 87A:
1. Total Income <= Rs.5,00,000
2. Rebate (Minimum of following) :-
a) 100% of Income Tax; or
b) Rs.2,000
Total Income = Gross Total Income - Deductions under Chapter VI-A
Alternatively, use following link to calculate your tax liability for AY 2016-17. You just need to input your data and it will calculate tax following all provisions automatically.
/share_files/new-version-of-income-tax-calculator-for-ay-2016-17-69445.asp
Thanks & Regards
Rohit Goyal