RBI on its today’s statement said that it had increased its PPF deposit limit from 1 lakh per year to 1.5 lakh per year.PPF is a 15-year investment scheme under which an investor enjoys tax exemption at the time of deposit, accrual of interest and withdrawal.
The interest rate on deposit in PPF for 2014-15 fiscal is 8.7 per cent.
Jaitley had increased the PPF investment limit in line with the hike in cumulative tax exemption limit under 80C Income Tax Act from Rs 1 lakh to Rs 1.5 lakh. He had raised the PPF investment limits in tax saving schemes with an aim of encouraging household savings.
Government has also proposed to launch National Savings Certificate (NSC) with insurance cover to provide additional benefits for the small saver.
