Budget 2014 - Public Provident Fund (PPF) Investment limit increased from Rs. 1 lakh to 1.5 lakh

Budget 2014  - Public Provident Fund (PPF) Investment limit increased from Rs. 1 lakh to 1.5 lakh

To increase household savings for the common man, the Budget 2014 presented by Finance Minister Arun Jaitley on 10th July 2014 hiked the PPF (Public Provident Fund) to 1.5 lakh per annum from existing Rs. 1 Lakh Per Annum. Investment in PPF qualifies for deduction under section 80C  and Similarly  investment limit under 80C has also been hiked by Rs 50,000 to Rs 1.5 lakh. 

The public provident fund is established by the central government. One can voluntarily open an account with any nationalized bank, selected authorized private bank or post office. The account can be opened in the name of individuals including minor.

The minimum amount is Rs.500 which can be deposited. The rate of interest at present is 8.7% per annum, which is also tax-free. The entire balance can be withdrawn on maturity. Interest received is tax free. The maximum amount which can be deposited every year now is Rs. 1,50,000 in an account. The interest earned on the PPF subscription is compounded and fully exempted from tax . All the balance that accumulates over time is exempt from wealth tax. Moreover, it has low risk  and PPF is available at post offices and banks

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Suhas D.Patil
Posted On : 01-08-2014
Please arrange to send the Govt. Notification no if any, released by Govt., for increased amount deposition for Rs.50,000/=, as our State Bank of India, are not accepting the said amount, when I went for deposition. Please therefore let me know, at your earliest.
Site Admin
Posted On : 21-08-2014
Please click the following link to read the Govt Notification http://yourownadviser.com/articles/govt-notifications-circulars/finance-ministry-notifies-revised-ppf-investment-limit-of-rs-150000
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