The Institute of Chartered Accountants of India (ICAI) suggested that PPF contribution should be increased from Rs. 1.5 Lakh to Rs. 3 Lakh in the PRE BUDGET MEMORANDUM 2022.
Why PPF Contribution should be Increased from Rs. 1.5 lakh to Rs. 3 lakh
PPF is used as a means of savings by entrepreneurs and professionals. While the assessees in employment have the compulsion of saving 12% of their salary (with matching contribution from employers), the only safe and tax-efficient saving option available for self-employed assessees is PPF.
Hence, the suggestion to increase the ceiling of PPF contribution to Rs.3 lakhs. This may also boost the domestic savings as a percentage of GDP and will have an anti-inflationary impact.
Further, the present limit of INR. 1,50,000 has not been increased for several years and requires reconsideration. The revised monetary limit will help in increasing the savings of individuals and is necessary keeping in view the rate of inflation.
It is suggested that:
a) the annual limit for contribution to PPF be increased to Rs. 3 lakhs from the present ceiling of Rs. 1.5 lakhs.
b) the maximum limit for deduction under section 80CCF may be increased from Rs.1.5 lakhs to Rs.3 lakhs.
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