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Business News/ Industry / Banking/  Now invest up to Rs1.5 lakh in Public Provident Fund
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Now invest up to Rs1.5 lakh in Public Provident Fund

The govt has issued a notification raising the limit from annual PPF deposit limit from Rs1 lakh to Rs1.5 lakh

PPF is a 15-year investment scheme under which an investor enjoys tax exemption at the time of deposit, accrual of interest and withdrawal. Photo: Pradeep Gaur/MintPremium
PPF is a 15-year investment scheme under which an investor enjoys tax exemption at the time of deposit, accrual of interest and withdrawal. Photo: Pradeep Gaur/Mint

New Delhi: People can now deposit up to Rs1.5 lakh annually in their Public Provident Fund (PPF) with the government notifying changes in the popular savings scheme.

The government has issued a notification raising the limit from annual PPF deposit limit from Rs1 lakh to Rs1.5 lakh in pursuance of the announcement made by finance minister Arun Jaitley.

PPF is a 15-year investment scheme under which an investor enjoys tax exemption at the time of deposit, accrual of interest and withdrawal. The interest rate on deposit in PPF for 2014-15 fiscal is 8.7%. Jaitley had increased the PPF investment limit in line with the hike in cumulative tax exemption limit under 80C Income Tax Act from Rs1 lakh to Rs1.5 lakh.

He raised the investment limits in tax saving schemes with an aim of encouraging household savings. Among other things, the government had also proposed to re-introduce Kisan Vikas Patra. He has also proposed higher exemption limit for re-payment of interest on loans of self-occupied houses from Rs1.5 lakh to Rs2 lakh.

“To address the concerns of decline in savings rate and improving returns for small savers, I propose to revitalise small savings," Jaitley had said in the budget speech.

Government has also proposed to launch National Savings Certificate (NSC) with insurance cover to provide additional benefits for the small saver. PTI

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Published: 20 Aug 2014, 08:57 PM IST
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