The Institute of Chartered Accountants of India (ICAI) has recommended raising the investment limit in PPF to Rs 3 lakh before the Union Budget to be presented on February 1, 2022.
New Delhi: There is now less than a month left for the presentation of the Union Budget 2022-23 and the finance ministers of the states, apart from the stakeholders, made suggestions to Finance Minister Nirmala Sitharaman. List is given. Meanwhile, the Institute of Chartered Accountants of India (ICAI) has also sent its recommendations and recommended raising the maximum annual deposit limit of PPF to Rs 3 lakh. Let us tell you that this year the budget session is going to start from February 1 and Union Finance Minister Nirmala Sitharaman will present the annual budget in Parliament on this day.
According to reports, the Institute of Chartered Accountants (ICAI) has suggested to Finance Minister Nirmala Sitharaman to increase the maximum limit for investment in Public Provident Fund (PPF) to Rs 3 lakh from the current Rs 1.5 lakh.
PPF is the only safe and tax effective savings 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 PPF deposit limit will boost household savings as a percentage of GDP and have an anti-inflationary effect.
Key Suggestions of ICAI
- The annual limit of contribution to PPF should be increased from the present limit of Rs 1.5 lakh to Rs 3 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 opportunities for savings 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 for a long time after retirement.