In its pre-Budget memorandum, the ICICI has made various suggestions under section 80C –one of which pertains to Public Provident Fund.
New Delhi: The Institute of Chartered Accountants of India has written to the Ministry of Finance regarding enhancing the annual limit for contribution to Public Provident Fund (PPF). The government is scheduled to present the Budget 2022-23 next month.
In its pre-Budget memorandum, the ICICI has made various suggestions under section 80C –one of which pertains to Public Provident Fund.
The ICAI suggested that:
a) the annual limit for contribution to PPF be increased to Rs 3 lakhs from the present ceiling of Rs 1.5 lakhs.
b) the maximum limit for deduction under section 80CCF may be increased from Rs 1.5 lakhs to Rs 3 lakhs.
“PPF is used as a means of savings by entrepreneurs and professionals. While the assessees in employment have the compulsion of saving 12% of their salary (with matching contribution from employers), the only safe and tax efficient saving option available for self-employed assessees is PPF. Hence, the suggestion to increase the ceiling of PPF contribution to Rs 3 lakhs,” said ICAI.
