LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Ppf max limit?

Sharad Saini (Student) (286 Points)

28 October 2011

hiiii

Max investment limit in PPF was suposed to be increased from 70000 to 1 lac p.a

from which yr this will be effective? notfication/circular has been issued or not?

Plzzzzz rply

Thanx.......

Reply
Follow
Share

11 Replies

ashish gupta ( student) (1922 Points)
Replied 29 October 2011

So far its recommended only. No increase in limit so far.

1 Like

Hari Wadhwa (CA in Practice) (485 Points)
Replied 29 October 2011

Dear Sharad

The limit of70000 in PPF a/c is a limit set by the Public Provident Fund Act & hence cannot be increased by making any amendment in Income Tax act or issuing any circular or notification under the force of this Act. Rather it requires the amendment in PPF Act to increase its upper limit.

Altough the committee has recomended to govt to increase its limit to Rs 1 lakhs to make it commensurate with the increased limit of Inc Tax Act u/s sec 80 C, as of now it is not increased & hence is still caped at70,000 only.

2 Like

Rahul Gupta (Chartered Accountant) (644 Points)
Replied 29 October 2011

It is expected to implement this amendement w.e.f. 01.04.2012

1 Like

Sharad Saini (Student) (286 Points)
Replied 29 October 2011

Thanx for replies...

@ Hari Sir : u said "Altough the committee has recomended to govt to increase its limit to Rs. 1 lakhs to make it commensurate with the increased limit of Inc Tax Act u/s sec 80 C, as of now it is not increased & hence is still caped at70,000 only."

I would like to seek clearification on highlighted portion.... I think IT Act, do not prescribes that Max deduction from PPF is 70K they will allow whatever is invested but since max cap of investment is 70K thats y deduction can also b upto a max of 70k...

thanx

Rahul Gupta (Chartered Accountant) (644 Points)
Replied 30 October 2011

@ Sharad I have reviewed the Sec. 80C and it states that any contribution made towards Provident Fund and it doesn't states any ceiling limit of 70K. As soon as the notification for increased limit is circulated, i think it will automatically applicable to IT Act without any further amendements.

CS RAJESH C.CHOUDHARY (ASSISTANT MANAGER) (14607 Points)
Replied 30 October 2011

70000 is the limit

Hari Wadhwa (CA in Practice) (485 Points)
Replied 30 October 2011

Dear Sharad

The same thing I have mentioned there. When I stated that "as of now it is not increased & hence is still caped at70,000 only" then I mean limit of Rs 70, 000 in the PPF Act & not IT Act. Thus, currently, IT act allows investment of Rs 1 Lakh in PPF, had it been permitted by PPF Act. So committee has recomended to increase the limit in PPF Act.

1 Like