What is Investment limit in PPF

Public Provident fund (PPF) account gives valuable service in saving tax and for your old age requirements. At present, government of India offers 8.8% percent interest for the investment in PPF accounts. In addition to that, you can also open separate accounts in the names of your children. As this scheme is backed by the government of India, your investment in the PPF account remains safe till its maturity after 15 years. Besides, tax-saving, you can also opt for loans on the amount available in the PPF account.

How much I can invest in PPF account, is there any Limit?

As per the provisions in the PPF account, the government of India has made several amendments from time to time. Let’s see some of the latest features of Public Provident Fund (PPF) account, which are prevailing right now. The amendment has been provided as per the norms laid down by the sub-section (4) of section 3 of the public provident act, 1968.

The highlights of the new public provident fund scheme are as follows;

  1. Under the new scheme, the higher limit of investment stands changed.

The revised scheme is called public provident fund scheme, 2011. It has come in to existence from 1st December, 2011. Earlier, the limit of investment in public provident fund scheme was Rs 70,000. But from 1st December 2011, the limit has been increased to Rs1, 00,000. By and large, the government of India intends to facilitate more and more investment through Public provident fund scheme.

  1. b.      Now you can have a single PPF account in your name and additional accounts in your children’s’ name.

You can also open additional PPF accounts in the names of your minor children. Although tax benefits will be available only for your account, you can enjoy the enhanced income from interest accrued in the accounts of the children.  At present, government of India gives 8.8% interest on the investment in PPF account.

  1. Although the higher limit has been increased, the lower limit remains the same.

Although the higher limit has been increased to Rs 1, 00,000, the minimum investment per annum still remains at Rs 500. This is how the scheme continues to be more and more popular as a public savings scheme in India.

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