At the same time, many important decisions can be taken in the budget by the Modi government. Before the budget, different suggestions are also sought from the Ministry of Finance regarding the budget. At the same time, an important suggestion regarding the budget has been given by an organization.

Important suggestion

Public Provident Fund (PPF) scheme is being run by the government in the country. Through this scheme, people are given the opportunity to save and invest on behalf of the government. Also, there is no tax on the money earned from this scheme. At the same time, before the budget, an important suggestion has been given to the government regarding this scheme.

In fact, Institute of Chartered Accountants of India (ICAI) has submitted Pre-Budget Memorandum 2023 to the government demanding increase in PPF limit . In this, many suggestions have been given to the government through ICAI. Along with this, a suggestion is also related to Public Provident Fund (PPF). He has demanded to increase the investment limit in PPF.

Demand to increase the limit

It has been suggested by ICAI that the investment limit in Public Provident Fund should be increased from the existing Rs 1.5 lakh and it should be increased to Rs 3 lakh per year. Let us tell you that at present one can invest in PPF from minimum investment of Rs 500 per year to Rs 1.5 lakh per year.

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Public Provident Fund (PPF) encourages people to invest for a long time. By investing money through this scheme, a good return can also be achieved on it. PPF like all other small savings schemes including Senior Citizen Savings Scheme (SCSS), Sukanya Samriddhi Yojana and National Savings Certificate (NSC) was introduced by the government to encourage small savings and provide returns on them.

Since the PPF scheme comes under the Exempt-Exempt-Exempt (EEE) category of the tax policy, the principal amount, maturity amount as well as the interest earned are exempt from tax.

PPF Limit At the same time, a good news has also come to the fore for PPF account holders. In fact, in the suggestions sought before the budget 2023, the institutions have demanded to increase the limit of PPF and it has been demanded to increase it to three lakhs.

Explain that in the pre-budget memorandum submitted to the government, ICAI has demanded to increase the investment limit in PPF to Rs 3 lakh annually. PPF Investment Let us tell you that at present, investment can be made in PPF from a minimum investment of Rs 500 to lakhs of rupees. Actually, the maximum investment limit in PPF is currently Rs 1.5 lakh annually. In such a situation, now there has been a demand to increase this limit further.

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This is an investment falling in the EEE category, that is, there is no tax on investment, interest and maturity amount. You get great interest on investment in PPF as well as tax exemption on investments up to Rs 1.5 lakh per annum. This is the reason why people are worried about investing in PPF. But you can also get more profit from this investment. If you keep some important things in mind before investing in PPF, then you will be in profit. 

Investment limit in PPF will be doubled 

Investors in PPF not only get assured returns, but also get income tax exemption under Section 80C of Income Tax on investments up to Rs 1.5 lakh. Many times it also happens that even after the limit of PPF investment is over, the investor is left with money and he is looking for investment options. According to tax experts, if the investor is married, then he can open a PPF account in the name of his wife or husband and invest Rs 1.5 lakh separately in it.

Also Read: EPFO Pension: Big news for 73 lakh pensioners, EPFO ​​is going to do this work

These benefits are available on investment in PPF 

According to experts, if you open a PPF account in the name of your life partner, then the limit of PPF investment will also double, although even then the income tax exemption limit will still be Rs 1.5 lakh. Even if you get 1.5 lakh income tax exemption, but it has many other benefits. PPF investment limit doubles to Rs 3 lakh. Being in the EEE category, the investor gets tax exemption on the interest and maturity amount of PPF.

These provisions have no effect 

Income from any sum or gift given by you to your wife will be added to your income under section 64 of Income Tax. However, in case of PPF which is completely tax free on account of EEE, the provisions of clubbing have no effect.  

Also Read: Good news for EPFO account holders money will come in the account before 31st july 2022, know more details

Great trick for married people

In this, when your partner’s PPF account matures in future, then the income from your initial investment in your partner’s PPF account will be added to your income year after year. Therefore, this option also gives married people a chance to double their contribution in the PPF account. This is a better option especially for those people who want to take less risk and do not want to make market linked investments like NPS, Mutual Funds, where the risk appetite is high. Let us tell you that the interest rate of PPF has been fixed at 7.1% for the July-September quarter.

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