Budget 2024: There is an exemption for investment up to Rs 1.5 lakh in PPF in a financial year. Tax exemption is also available on this. Also the government gives returns at the rate of 7.1%. If sources are to be believed, this time the limit of investment in PPF can be increased in the budget.
PPF Investment Limit: Good news is coming for those investing in Public Provident Fund. The country’s general budget is going to be presented soon. However, due to it being an election year, this time there will be an interim budget. But, the Finance Minister can please the investors. Especially investors who are taxpayers. In fact, big steps can be taken to reduce the tax burden. Apart from this, a good opportunity can also be given in terms of investment. Overall, investors can get double the benefits from Budget 2024.
Preparations for Budget 2024 are going on. It is an election year and there will be a vote on account budget, but taxpayers can be made happy in this. This has happened before also. If sources are to be believed, this time Finance Minister Nirmala Sitharaman can make a big change for those investing in PPF. This will not only benefit investors. Rather, the burden on taxpayers will be reduced. Also, a big jump can be seen in the investment cycle.
Investors can get double benefit
There is exemption for investment up to Rs 1.5 lakh in PPF in a financial year. Tax exemption is also available on this. Also the government gives returns at the rate of 7.1%. If sources are to be believed, this time the limit of investment in PPF can be increased in the budget. Under the current system, up to Rs 1.5 lakh can be invested annually, on which tax exemption is available. It can be increased to Rs 3 lakh. Meaning the investor can get the option to invest Rs 3 lakh. This will also help in earning returns on the entire amount. Sources say that for the last many years the government has not made any change in the interest rates of PPF. Because of this, investors are expected to get benefits in other ways.
What will happen by increasing the limit of PPF?
Increasing the investment limit of PPF will have two benefits. First, the attractiveness of the scheme will increase rapidly. Till now this scheme has been quite popular and superhit. Experts also believe that increasing the investment limit will increase the attraction. Secondly, if the amount of investment is more then the deposits with banks and government will also increase. The benefit of which can be given to other sectors also. Apart from this, investors will get double benefit by doubling the limit. Savings will also be more and the interest earned on it will also be more.
The share of domestic savings will increase
PPF is a good, safe and tax saving scheme giving excellent returns for taxpayers. The maximum limit for investment in PPF has not changed for many years. Experts believe that if this happens in Budget 2023, then increasing the limit of investment in PPF will also help in increasing the share of domestic savings in GDP. It will be a profitable deal for both the taxpayer and the government.
PPF will make you a millionaire
If the investment limit in PPF is increased to Rs 3 lakh, it will help people to save money for long term goals. It will become easy for those who invest money in the scheme to become millionaires. If an investment of Rs 3 lakh is made every year for 20 years (PPF Investment), then any common person can become the owner of Rs 1.33 crore after 20 years. At present PPF interest rate is 7.1%. There is government guarantee on interest and there is also tax exemption.
