Indian Union Budget 2022: ICAI asks government to hike annual limit for contribution to PPF to Rs 3,00,000
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The Institute of Chartered Accountants of India (ICAI) has also asked the government to increase the maximum limit for deduction under section 80CCF to Rs 3,00,000 from Rs 1,50,000. The suggestions are a part of a pre-Budget memorandum made by the ICAI. Along with these, the organisation has made various other suggestions
In a proposal, the Institute of Chartered Accountants of India (ICAI) has written to the Ministry of Finance of Indian government to hike the annual limit for contribution to Public Provident Fund (PPF) to Rs 3,00,000.
Presently, the limit for the savings component is Rs 1,50,000 under section 80C of the income tax rules.
This comes as the government is going to present the Budget 2022-23 on Tuesday.
It has also asked the government to increase the maximum limit for deduction under section 80CCF to Rs 3,00,000 from Rs 1,50,000.
The suggestions are a part of a pre-Budget memorandum made by the ICAI. Along with these, the organisation has made various other recommendations.
"PPF is used as a means of savings by entrepreneurs and professionals. While the assesses 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 assesses is PPF. Hence, the suggestion to increase the ceiling of PPF contribution to Rs 3,00,000," said ICAI.
The raise in ceiling of 15-year investment scheme PPF will boost the domestic savings and will have an anti-inflationary impact, ICAI said.
(With inputs from agencies)
