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PPF Investment Limit increased to 1 lakh from 1.12.2011 and  Interest on loan against PPF will cost 2 percent extra

Public Provident Fund (Amendment) Scheme, 2011 – Amendment in paragraphs 3, 11 and Form A

NOTIFICATION [F.No. 1/9/2011-NS-II],

dated 25-11-2011

In exercise of the powers conferred by sub-section (4) of section 3 of the Public Provident Fund Act, 1968 (23 of 1958), the Central Government hereby makes the following further amendment to the Public Provident Fund Scheme, 1968, namely :-

1. (1) This Scheme may be called the Public Provident Fund (Amendment) Scheme, 2011.

(2) It shall come into force on the 1st day of December 2011.

2. In the Public Provident Fund Scheme, 1968, –

(i) in paragraph 3, in sub-paragraph (1), for the letters and figures “Rs 70,000/-“, the letters and figures “Rs 1,00,000” shall be substituted;

(ii) in paragraph 11, in sub-paragraph (2), for the words “one per cent, per annum”, the words “two per cent, per annum” shall be substituted;

(iii) in Form-A, in paragraph (iv), for the letters and figures “Rs 70,000/-“, the letters and figures “Rs 1,00,000” shall be substituted.

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0 Comments

  1. Abhiyog says:

    can anybody clarify the doubt . my question is what % of tax is applicable if the amount of ppf is exceeding rs 1lack and what is the maximum investment amount for ppf plz answer my question

  2. Dhamotharan says:

    Dear sir

    I know Rs 1Lac is the limit for Tax advantage in PPF .Are we allowed to deposit more than Rs 1Lac in a finanacial year as an investment option? Kindly clarify

  3. Sriram says:

    This site was really helpful.
    ok it was clear from the above discussions that the ppf limit has increased from 70000 to 1 lakh wef dec 1st 2011. So it is clear that for this financial year 2012-13 we can save upto 1 lakh n if we save more than that in the same ppf account,the amount saved more than 1lakh will not be come under savings.

  4. V.SUBRAMANIAN says:

    Our Employee has invested Rs.100000 in PPF at Post Office. Will I take this 1 Lakh under 80C as total deduction for the Financial Year 2011-2012. Since, The limit was Rs.70000 earlier.

    Please reply, Urgent

  5. Ashok says:

    Check this link for Notification issued by Ministry of Finance towards enhancement of limit from existing Rs.70,000 to Rs.100,000 & change in interest rate to 8.6%.

    Please make a note that future subscriptions and balances in your account will earn the new interest rate from 1Dec11.
    So any previous contributions will earn 8% till Nov & will start earning 8.6% from the current month. Same goes for the balance standing in your account as of 1Apr11.

    Link:

    https://taxguru.in/finance/interest-rate-ppf-increased-860-percent-wef-01122011.html

    https://taxguru.in/finance/ppf-investment-limit-increased-1-lakh-1122011-interest-loan-ppf-cost-2-percent-extra.html

  6. Dalip Singh says:

    If we deposite 1 lakh rupees per year in 15 years in the post office for PPF account ,how much amount we will get after complexion of 15 years.

  7. krishnan says:

    Hi,

    I have a PPF account with SBI. Even today (December 5th 2011), I checked the limit is 70000 only. Contacted the customer care and they are saying that SBI does have an official communication regarding this.

    Can you help by posting the link to the official notification on this?

    Is there any way to mandate this from the Bank?

    krishnan

  8. Dayal says:

    This is only a clarification on the increase in deposit limits under PPF. This does not draw relationship with the investment exemption.

    Earlier the cap was 70000/- which has been raised to 100000/-.

    Whether the extended limit of Rs. 25000/- would be applicable to exemption has not been clarified.

    Maybe this would be clarified then only it makes worthwhile, else banks are offering better options on the 25000/- which is 9%+

  9. Ashis says:

    If anybody clarify the doubt crept in my mind-about effective period of the same -i.e. whether for the current financial year the present amendment is applicable ? whether an assessee could get benefit by investing Rs.1,00,000/- in the present financial year ? Plz clarify

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