Budget 2021: ICAI suggests Centre should raise PPF limit to Rs lakh, section 80C to Rs 2.5 lakh

Budget 2021: ICAI suggests Centre should raise PPF limit to Rs lakh, section 80C to Rs 2.5 lakh

FPJ Web DeskUpdated: Tuesday, January 19, 2021, 01:24 PM IST
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As the Union Budget is around the corner, the Institute of Chartered Accountants of India (ICAI) in its pre-memorandum recommended the Centre to increase the annual limit for contribution of PPF to Rs 3 lakh. The current limit is Rs 1.5 lakh, reported CNBC-TV18.

ICAI has also asked the Centre to increase the maximum limit for deduction under Section 80C of the Income Tax Act to Rs 2.5 lakh which at present is Rs 1.5 lakh.

Increase of the ceiling of PPF may boost increasing the savings of individuals and is necessary for keeping in view the rate of inflation. It will also show an anti-inflationary impact on the economy, said ICAI.

ICAI added that the current limit of Rs 1.5 lakh has not been increased for the past few years and now, it should be reconsidered.

Further, ICAI said that the increase in the limit of deduction under section 80C to Rs 2.4 lakh may lead to saving opporunities for the public. It also suggested that the Centre should consider amending Section 80CCC of the IT Act.

The Budget session of Parliament will begin on January 29 with the address of President Ram Nath Kovind to the joint sitting of both the Houses and the Union Budget will be presented on February 1.

A communication from the Lok Sabha Secretariat said on Thursday that the session would conclude on April 8.

The 5th session of the 17th Lok Sabha will have 35 sittings -- 11 in the first part and 24 in the second part.

The session will be held in two parts -- from January 29 to February 15 and March 8 to April 8.

In order to enable the standing committees to consider the Demands for Grants of ministries and prepare their reports, the Houses will adjourn on February 15 and meet again on March 8.

This year, the Union Budget 2021 will be a completely paperless exercise in the view of coronavirus pandemic.

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