BANKING AFFAIRS

Detailed explanation-1: -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.

Detailed explanation-2: -The maximum amount that you can invest in your PPF account in a financial year is Rs. 1.5 lakh. Any amount beyond that will not earn any earning interest and would not be eligible for deductions under Section 80C of the Income Tax Act, 1961.

Detailed explanation-3: -Hence, we suggest government to increase the ceiling of PPF contribution to Rs 3 lakh, ” said the ICAI. In 2014, the limit for maximum deduction under Section 80C was raised to Rs 1.5 lakh.

Detailed explanation-4: -PPF Withdrawal Limits The maximum amount that can be withdrawn per financial year is the lower of the following: 50% of the account balance as at the end of the financial year, preceding the current year, or. 50% of the account balance as at the end of the 4th financial year, preceding the current year.