Sharad Saini (Student) (286 Points)
28 October 2011hiiii
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.......
ashish gupta
( student)
(1922 Points)
Replied 29 October 2011
So far its recommended only. No increase in limit so far.
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.
Rahul Gupta
(Chartered Accountant)
(644 Points)
Replied 29 October 2011
It is expected to implement this amendement w.e.f. 01.04.2012
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."
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.
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.
Murugan Selvaraj
(Assitant Manager- Fiance & Accounts)
(21 Points)
Replied 01 November 2011
Noida
(CA )
(598 Points)
Replied 16 December 2011
will it have any effect on upper limit of Rs.100000 on 80C ?
Hari Wadhwa
(CA in Practice)
(485 Points)
Replied 18 December 2011
PPF limit has now been raised to Rs 1 Lakhs.
CAclubindia
