The Institute of Chartered Accountants of India (ICAI) has recommended raising the investment limit in PPF 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, gave suggestions to Finance Minister Nirmala Sitharaman. The 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.
ICAI Recommendation
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) 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 saving 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 from 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 -(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.
