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Public provident fund

16 September 2011

Hello...I wanted to know whether limit for deduction u/s 80C for contribution to PPF has been raised from Rs.70,000 to 1,00,000?

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6 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 16 September 2011

Yes the limit is raised from Rs. 70,000/- to Rs. 100,000/- as per press dated 06/09/2011

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CA RICHA BADALIA (CA,CS) (1682 Points)
Replied 16 September 2011

Thanks mihir.

Vishal Kr. Choudhary (Articled Assistant) (55 Points)
Replied 16 September 2011

Yes the limit is raised from Rs. 70,000/- to Rs. 100,000/- as per press dated 06/09/2011. The press note is as follows:

MODIFICATION IN PPF SCHEME : DEPOSIT LIMIT RECOMMENDED TO BE RAISED FROM RS. 70,000 TO RS. ONE LAC WHILE RATE OF INTEREST ON ADVANCES AGAINST DEPOSITS IN PPF SCHEME RAISED FROM 1 PER CENT TO 2 PERCENTAGE POINTS

PRESS RELEASE, DATED 6-9-2011

The Committee on Comprehensive Review of National Small Savings Fund (NSSF) headed by Deputy Governor, RBI has recommended revision of certain provisions of PPF Scheme, 1968 and benchmarking of interest rates on various small savings schemes with the secondary market yields on Central Government securities of comparable maturities with suitable spread.

The Committee has recommended increasing the deposit limit under PPF Scheme from existing Rs. 70,000 to Rs. 1 lakh per annum and fixing of rate of interest on advances against deposits in PPF scheme at 2 percentage points as against the prevailing interest rate on such advances at 1 per cent.

The Committee has further recommended benchmarking interest rate on small saving schemes to interest rate on Government securities of similar maturities with a positive spread of 25 basis points on all schemes except for 50 basis points for 10 year NSC and 100 basis point for Senior citizens Savings Scheme. Recommendations of the Committee have been referred to State Governments and concerned Ministries/Departments of Central Government for their comments.

This information was given by the Minister of State for Finance Shri Namo Narain Meena in a written reply to a question raised in Rajya Sabha today.

CA RICHA BADALIA (CA,CS) (1682 Points)
Replied 16 September 2011

By reading this press release i can make out that it is only a recommendation by the committee.Is it not yet applicable.?

Mihir (Wealth Manager) (5293 Points)
Replied 16 September 2011

Short version of the Committee on NSSF

https://finmin.nic.in/press_room/2011/COMMITTEE_COMPREHENSIVE_REVIEW_NSSF.pdf

Long version of the Committee on NSSF

https://finmin.nic.in/reports/Report_Committee_Comprehensive_Review_NSSF.pdf

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* Krishna * (CA Student) (6149 Points)
Replied 18 September 2011

@ Richa

The proposed increase in limit from 70k to 1lac is still in process. Recommendations of the committe have been referred to state governments and various ministries of central government for their comments.

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