Budget 2021: ICAI asks govt to raise section 80C limit; PPF deposit limit to Rs 3 lakh

The Institute of Chartered Accountants of India (ICAI) in its pre-budget memorandum has recommended the government to increase the annual limit for contribution to Public Provident Fund (PPF) to Rs 3 lakh, from the present ceiling of Rs 1.5 lakh. The ICAI has also asked the government to increase the maximum limit for deduction under section 80C of the Income Tax (I-T) Act to Rs 2.5 lakh from the present Rs 1.5 lakh.

Budget 2021-22 will be presented on February 1 by Finance Minister Nirmala Sitharaman, which will be the third budget of the Modi 2.0 government.

PPF, as we know, is a long term and popular investment scheme that helps investors in mobilising small savings. According to experts, PPF is one of the safest fixed income products and offers the best tax saving options. The maturity amount and the overall interest earned during the period of investment are tax-free.