The Institute of Chartered Accountants of India (ICAI) has proposed raising the PPF investment limit to Rs 3 lakh before the Union Budget, which is scheduled to be presented on February 1, 2022.
There is now less than a month until the presentation of the Union Budget 2022-23, and in addition to stakeholders, state Finance Ministers have provided a list of suggestions to Finance Minister Nirmala Sitharaman. Meanwhile, the Institute of Chartered Accountants of India (ICAI) has sent its recommendations, recommending that the maximum annual deposit limit of PPF be increased to Rs 3 lakh. Let us remind you that the budget session will begin on February 1 this year, and Union Finance Minister Nirmala Sitharaman will present the annual budget in Parliament on that day.
The ICAI suggested
According to the report, the Institute of Chartered Accountants (ICAI) has recommended to Finance Minister Nirmala Sitharaman that the maximum investment limit in Public Provident Fund (PPF) be increased from Rs 1.5 lakh to Rs 3 lakh.
‘The PPF is the only safe and tax-effective savings plan.’
The ICAI has stated in its recommendation that increasing the PPF deposit limit is necessary because it is the only safe and tax-effective savings scheme. The ICAI also believes that increasing the PPF deposit limit will increase household savings as a percentage of GDP and have an anti-inflationary effect.
ICAI’s Key Suggestions – The annual contribution limit to PPF should be increased from Rs 1.5 lakh to Rs 3 lakh.
– The maximum deduction limit under section CCF can be raised from Rs 1.5 lakh to Rs 3 lakh.
The amount of deduction under section 80C is being increased from Rs 1.5 lakh to Rs 2.5 lakh in order to provide more opportunities for savings to the general public.
Finance Minister Nirmala Sitharaman will present the Union Budget 2022-23 to Parliament on February 1, 2022.
What exactly is PPF?
PPF, or Public Provident Fund, is one of India’s most popular long-term investment options. This is a retirement savings plan for investors who want to save for a long time after they retire.