Great news for PPF account holders! Finance Minister can make this big announcement in the new budget
By Lokmat English Desk | Updated: January 6, 2022 15:44 IST2022-01-06T15:44:14+5:302022-01-06T15:44:14+5:30
Next 
New Delhi: With less than a month to go before the Union Budget 2022-23 is due to be tabled, state finance ministers, apart from stakeholders, have given a list of suggestions to Union Finance Minister Nirmala Sitharaman.
In addition, the Institute of Chartered Accountants of India (ICAI) has also sent its recommendations for raising the maximum annual deposit limit of PPF to Rs 3 lakh.
Meanwhile, this year's budget session is starting from February 1. Union Finance Minister Nirmala Sitharaman will present the annual budget in Parliament on this day.
Recommendation from ICAI
According to the reports, the Institute of Chartered Accountants (ICAI) has recommended to Finance Minister Nirmala Sitharaman to increase the maximum investment limit in the Public Provident Fund (PPF) from the current Rs 1.5 lakh to Rs 3 lakh.
PPF is the only safe and tax-effective savings plan
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 plan. The ICAI also said that raising the PPF deposit limit would boost domestic savings as a percentage of GDP and curb inflation.
Key recommendations from ICAI
The annual contribution limit in PPF should be increased from the current Rs 1.5 lakh to Rs 3 lakh. Also, the maximum deduction under section CCF can be increased from Rs 1.5 lakh to Rs 3 lakh.
The deduction under section 80C is being increased from Rs 1.5 lakh to Rs 2.5 lakh to provide huge savings to the people. The Union Budget 2022-23 will be present by Finance Minister Nirmala Sitharaman in Parliament 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.
Nowadays PPF is a safe and tax-saving investment. You can invest a minimum of Rs. 500 per year and a maximum of Rs. 1.5 lakhs per year.
