Investment limit in PPF raised to Rs 3 lakh

PPF Investment Limit Increased Investment limit in PPF can be increased up to Rs 3 lakh, know update The Institute of Chartered Accountants of India (ICAI) has recommended raising the investment limit in PPF (Public Provident Fund) to Rs 3 lakh ahead of the Union Budget to be presented on February 1, 2022. There is now less than a month left for the Union Budget 2022-23 to be presented and the finance ministers of the states, apart from the stakeholders, made suggestions to Finance Minister Nirmala Sitharaman. List is given.

PPF Investment Limit Increased

Meanwhile, the Institute of Chartered Accountants of India (ICAI) has also sent its recommendations and recommended raising the maximum annual deposit limit of PPF (Public Provident Fund) to Rs 3 lakh. Let us tell you that this year the budget session is going to start from February 1 and on this day Union Finance Minister Nirmala Sitharaman will present the annual budget in Parliament.

ICAI recommended

According to reports, the Institute of Chartered Accountants (ICAI) has suggested to Finance Minister Nirmala Sitharaman to increase the maximum investment limit in Public Provident Fund (PPF) from the current Rs 1.5 lakh to Rs 3 lakh.

PPF is the only safe and tax effective saving scheme

In this recommendation of ICAI, it is necessary to increase the deposit limit of PPF, as it is the only safe and tax effective savings scheme. ICAI also said that it believes that the increase in the PPF deposit limit will boost household savings as a percentage of GDP and have an anti-inflationary effect.

Key Suggestions of ICAI

Increase the annual limit of contribution in PPF to Rs 3 lakh from the existing limit of Rs 1.5 lakh. The maximum limit of deduction under section CCF can be increased from Rs 1.5 lakh to Rs 3 lakh. The quantum of deduction under section 80C is being increased from Rs 1.5 lakh to Rs 2.5 lakh to provide savings opportunities to the public at large. Union Budget 2022-23 will be presented in Parliament by Finance Minister Nirmala Sitharaman on February 1, 2022.

What is PPF?

Public Provident Fund or PPF is one of the most popular, long-term investment options in India. This is a savings plan for investors to save long term after retirement.

Why PPF contribution should be increased from Rs. 1.5 lakh to Rs. 3 lakh

PPF (Public Provident Fund) is used by entrepreneurs and professionals as a means of savings. While the assessees in employment are compelled to save 12% of their salary (with matching contributions from employers), the only safe and tax-efficient savings option available to the self-employed assessees is PPF.

Hence, the suggestion to increase the limit of PPF contribution to Rs 3 lakh. It can also boost household savings as a percentage of GDP and will have an anti-inflationary effect. Also, the current limit of INR 1,50,000 has not been increased for many years and this needs to be reconsidered. The revised monetary limit will help in increasing the savings of the individuals and is necessary keeping in view the rate of inflation.

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