PPF Investment Limit increased to 1 lakh from 1.12.2011

[NewsDesk]

Public Provident Fund (Amendment) Scheme, 2011 – Amendment in paragraphs 3, 11 and Form A as per NOTIFICATION [F.No. 1/9/2011-NS-II], dated 25-11-2011 -

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.

[Vipul]

Is this mean that the limit of Rs. 1 lakh, also increased to Rs. 1,30,000?

[Arun.Kumar]

No. This only mean that the investment limit in the PPF account has been raised to 1 lakh. The text in red below is changed from 70,000 to 1,00,000.
3. Limit of subscription:- (1) Any individual may, on his own behalf or on behalf of a minor of whom he is the guardian, subscribe to the Public Provident Fund (thereafter referred to as the fund) any amount not less than Rs. 500 and not more than Rs. 70,000 in a year.(2) Notwithstanding anything contained in sub-paragraph (1), an individual may also subscribe to the fund on behalf of:- (a) a Hindu Undivided Family, or(b) an association of persons or a body of individuals consisting in either case, only of husband and wife governed by the system of community of property in force in the State of Goa and the Union territories of Dadra and Nagar Haveli and daman and Diu, by whom or on whose behalf money is deposited in an account and the deposit means money is deposited. Out of the income of the Hindu Undivided Family or an association of persons or body of individuals, as the case may be , any amount not lessthan Rs. 500 and not more than Rs. 70,000 in a year.

[Vipul]

Thanks Arun, This is very quick.

[magnet]

I went to my ppf holding branch and the manager says to come in next financial year to make payment above 70k.I know he is dumbo.Can i make payment in excess of 70k which i already di in my ppf account?

[Krypton]

I went to my ppf holding branch and the manager says to come in next financial year to make payment above 70k.I know he is dumbo.Can i make payment in excess of 70k which i already di in my ppf account? This rule is applicable from current year (from 1 Dec'2011), so you can deposit 1 lac now.

[magnet]

Thanks i have already done 70k for the year doubt was for excess.Anyways i plan to go direct to teller counter and deposit.Have taken printout of the notification as i know the money doesnt remain in sbi but passes to central government hence its upto government to decide whether to pay me interest on excess money if its not yet rule or ill be call to re withdraw excess amount. But legally speaking i guess i am right since i have the notification.

[magnet]

Done with rest 30 thousand as the bank did got the notification late.